Investment BAFI1042

The questions and data are attached.

DuPont 3 step process (Net Profit Margin, Total Asset Turnover & Financial Leverage)

P/E Ratio Model

I need someone to thoroughly interpret DuPont 3 step process data and P/e Ratio Model Data based on the files attached. The data is provided. I need the data to be interpreted and give reasoning as to why i.e. Net Profit Margin is increasing or decreasing for Harvey Norman Per Year from 2010-2015etc etc. This assignment is primarily for Harvey Norman (Australia) and the peers are Myer(Aus) and Jb Hifi (Aus).

\fHarvey Norman Net Income Net Sales Total Assets Common Equity Interest Expense Income Tax Profit Margin Total Asset Turnover Financial Leverage Interest Expense Rate Tax Retention Rate Return On Equity JB-Hifi Net Income Net Sales Total Assets Common Equity Profit Margin Total Asset Turnover Financial Leverage Return On Equity Myer Net Income Net Sales Total Assets Common Equity Profit Margin Total Asset Turnover Financial Leverage Return On Equity 06/10 06/11 06/12 296,616,000.00 2,368,635,000.00 3,704,513,000.00 2,157,211,000.00 33,638,000.00 296,616,000.00 241,589,000.00 2,545,420,000.00 4,004,009,000.00 2,228,461,000.00 42,984,000.00 241,589,000.00 201,798,000.00 2,352,978,000.00 3,951,816,000.00 2,266,882,000.00 49,455,000.00 201,798,000.00 0.1252265545 0.6393917365 1.72 0.0090802759 0 0.137 0.0949112524 0.6357178518 1.80 0.0107352406 0 0.108 0.0857628078 0.5954168919 1.74 0.0125144997 0 0.089 06/10 06/11 06/12 118,652,000.00 2,731,320,000.00 714,322,000.00 293,296,000.00 134,411,000.00 2,959,253,000.00 767,139,000.00 152,313,000.00 104,641,000.00 3,127,792,000.00 811,149,000.00 184,501,000.00 0.0434412665 3.8236537584 2.4354986089 0.4045469423 0.0454205842 3.8575186505 5.0365956944 0.8824657121 0.0334552298 3.856001795 4.3964477157 0.5671568176 06/10 06/11 06/12 163,534,000.00 2,928,746,000.00 1,953,914,000.00 857,440,000.00 162,565,000.00 2,776,132,000.00 1,977,962,000.00 861,330,000.00 140,967,000.00 2,726,005,000.00 1,918,193,000.00 877,680,000.00 0.0558375496 1.4989124393 2.2787763575 0.1907235492 0.0585580945 1.4035315138 2.2964043978 0.1887371855 0.0517119374 1.4211317631 2.1855266156 0.1606132075 06/13 06/14 06/15 205,864,000.00 2,239,716,000.00 4,065,031,000.00 2,363,855,000.00 45,774,000.00 205,864,000.00 220,865,000.00 2,435,336,000.00 4,225,336,000.00 2,491,106,000.00 36,437,000.00 220,865,000.00 269,188,000.00 2,580,961,000.00 4,358,544,000.00 2,556,860,000.00 32,872,000.00 269,188,000.00 0.091915225 0.550971444 1.72 0.0112604307 0 0.087 0.0906917978 0.5763650512 1.70 0.0086234562 0 0.089 0.1042975853 0.5921612814 1.70 0.0075419681 0 0.105 Profit Margin Harvey Norman JB-Hif Myer Total Asset Turnover Harvey Norman JB-Hif Myer Financial Leverage Harvey Norman JB-Hif Myer Return On Equity 06/13 06/14 06/15 116,632,000.00 3,308,396,000.00 843,304,000.00 243,828,000.00 128,447,000.00 3,483,893,000.00 859,841,000.00 294,633,000.00 137,630,000.00 3,652,136,000.00 895,013,000.00 343,479,000.00 0.0352533373 3.9231356664 3.4586019653 0.4783371885 0.0368688131 4.0517874816 2.9183458744 0.435955918 0.037684796 4.0805396123 2.6057284434 0.4006940745 06/13 06/14 06/15 132,077,000.00 2,737,544,000.00 1,939,705,000.00 905,642,000.00 98,542,000.00 2,740,936,000.00 1,932,664,000.00 893,413,000.00 77,513,000.00 2,772,370,000.00 1,886,548,000.00 863,016,000.00 0.0482465305 1.4113197625 2.1418010649 0.1458379801 0.0359519522 1.4182165136 2.1632369352 0.1102983726 0.0279591108 1.4695464944 2.1859942342 0.0898164113 Harvey Norman JB-Hif Myer Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 0.1252265545 0.0949112524 0.0857628078 0.091915225 0.0906917978 0.1042975853 0.0434412665 0.0454205842 0.0334552298 0.0352533373 0.0368688131 0.037684796 0.0558375496 0.0585580945 0.0517119374 0.0482465305 0.0359519522 0.0279591108 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 0.6393917365 0.6357178518 0.5954168919 0.550971444 0.5763650512 0.5921612814 3.8236537584 3.8575186505 3.856001795 3.9231356664 4.0517874816 4.0805396123 1.4989124393 1.4035315138 1.4211317631 1.4113197625 1.4182165136 1.4695464944 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 1.7172696598 1.7967597369 1.7432826234 1.719661739 1.6961686897 1.7046471062 2.4354986089 5.0365956944 4.3964477157 3.4586019653 2.9183458744 2.6057284434 2.2787763575 2.2964043978 2.1855266156 2.1418010649 2.1632369352 2.1859942342 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 0.1374997624 0.1084106924 0.0890200725 0.087088252 0.0886614219 0.1052806959 0.4045469423 0.8824657121 0.5671568176 0.4783371885 0.435955918 0.4006940745 0.1907235492 0.1887371855 0.1606132075 0.1458379801 0.1102983726 0.0898164113 Harvey Norman JB-Hif Myer Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 0.1252265545 0.0949112524 0.0857628078 0.091915225 0.0906917978 0.0434412665 0.0454205842 0.0334552298 0.0352533373 0.0368688131 0.0558375496 0.0585580945 0.0517119374 0.0482465305 0.0359519522 Total Asset Turnover Harvey Norman JB-Hif Myer Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 0.6393917365 0.6357178518 0.5954168919 0.550971444 0.5763650512 3.8236537584 3.8575186505 3.856001795 3.9231356664 4.0517874816 1.4989124393 1.4035315138 1.4211317631 1.4113197625 1.4182165136 Financial Leverage Harvey Norman JB-Hif Myer Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 1.7172696598 1.7967597369 1.7432826234 1.719661739 1.6961686897 2.4354986089 5.0365956944 4.3964477157 3.4586019653 2.9183458744 2.2787763575 2.2964043978 2.1855266156 2.1418010649 2.1632369352 Profit Margin Return On Equity Harvey Norman JB-Hif Myer Jun-10 13.75% 40.45% 19.07% Jun-11 10.84% 88.25% 18.87% Jun-12 8.90% 56.72% 16.06% Jun-13 8.71% 47.83% 14.58% Jun-14 8.87% 43.60% 11.03% Financial leverage Harvey Norman JB-Hif Myer 5.0365956944 4.3964477157 3.4586019653 2.9183458744 2.4354986089 2.2787763575 1.7172696598 J an -1 0 2.6057284434 2.2964043978 1.7967597369 2.1855266156 1.7432826234 J an -1 1 J an -1 2 2.1418010649 1.719661739 2.1632369352 1.6961686897 J an -1 3 J an -1 4 RETURN ON EQUITY Harvey Norman 88.25% JB-Hif Myer 2.185994234 1.7046471062 J an -1 5 RETURN ON EQUITY Harvey Norman JB-Hif Myer 88.25% 56.72% 47.83% 43.60% 40.45% 19.07% 13.75% J an -1 0 18.87% 10.84% J an -1 1 16.06% 8.90% J an -1 2 14.58% 8.71% J an -1 3 8.87% 11.03 J an -1 4 Jun-15 0.1042975853 0.037684796 0.0279591108 Jun-15 0.5921612814 4.0805396123 1.4695464944 Jun-15 1.7046471062 2.6057284434 2.1859942342 Profi t Margin Harvey Norman JB-Hif Myer 0.1252265545 0.1 0.0949112524 0.091915225 0.0906917978 0.0857628078 0.0558375496 0.0585580945 0.0517119374 0.0454205842 0.0434412665 0.0482465305 0.0334552298 0.0352533373 J an -1 2 J an -1 3 0.0368688131 0.0359519522 Jun-15 10.53% 40.07% 8.98% J an -1 0 J an -1 1 J an -1 4 Total asset turnover Harvey Norman 3.8575186505 3.8236537584 JB-Hif Myer 4.0517874816 3.9231356664 3.856001795 458744 2.6057284434 1632369352 97 -1 4 TY yer 2.1859942342 1.7046471062 1.4989124393 J an -1 5 0.6393917365 J an -1 0 1.4035315138 0.6357178518 J an -1 1 1.4211317631 0.5954168919 J an -1 2 1.4113197625 0.550971444 J an -1 3 1.4182165136 0.5763650512 J an -1 4 0.5 TY yer % 43.60% 40.07% 14.58% 8.87% 3 11.03% J an -1 4 10.53% 8.98% J an -1 5 gin f Myer 0.1042975853 5225 0.0906917978 0.0482465305 0.0368688131 0.0359519522 52533373 0.037684796 0.0279591108 an -1 3 J an -1 4 J an -1 5 4.0517874816 4.0805396123 rnover f Myer 31356664 1.4113197625 1444 an -1 3 1.4182165136 0.5763650512 J an -1 4 1.4695464944 0.5921612814 J an -1 5 \fHVN Year Market Value ($) Earnings per share ($) P/E Ratio 2011 2012 2.49 1.95 0.2205 0.1863 11.292517007 10.4669887 2013 2.55 0.1916 13.308977 2014 2015 3.10 4.51 0.2072 0.2451 14.96139 18.4006528 Myers Year Market Value ($) Earnings per share ($) P/E Ratio 2011 2012 2013 2014 2015 2.31 1.83 2.68 2.28 1.26 0.278 0.2368 0.2197 0.166 0.1323 8.309352518 7.72804054 12.1984524 13.7349398 9.52380952 JB Hi-Fi Year Market Value ($) Earnings per share ($) P/E Ratio 2011 2012 2013 2014 2015 17.07 8.86 16.81 18.3 19.48 1.2388 1.0587 1.1702 1.2689 1.3758 13.779463997 8.36875413 14.3650658 14.4219403 14.1590347 Year 2011 2012 2013 2014 Harvey Norman Holdings Ltd 11.292517007 10.4669887 13.308977 14.96139 Myers Holdings Ltd 8.309352518 7.72804054 12.1984524 13.7349398 JB Hi-Fi Ltd 13.779463997 8.36875413 14.3650658 14.4219403 Industry Average 11.127111174 8.85459447 13.2908318 14.3727567 2015 18.4006528 9.52380952 14.1590347 14.0278324 Industry Historical P/E Ratio Comparison P/E Ratio 20 18 16 14 12 10 8 6 4 2 0 2011 2012 2013 2014 Financial Year Harvey Norman Holdings Ltd Myers Holdings Ltd JB Hi-Fi Ltd 2015