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Please explain the results of DuPont Results and please explain the results of company A's financial position based on the below table. DuPont Framework Company
Please explain the results of DuPont Results and please explain the results of company A's financial position based on the below table.
| DuPont Framework | ||||||||
| Company A | Market Comparison | |||||||
| Year | 2014 | 2015 | 2016 | Return on Equity (ROE)=net Sales/Average shareholders' equity | Company A | Company B | Company C | |
| Ratio | 0.15 | 0.2 | 0.26 | 0.26 | 0.42 | 1.42 | ||
| Year | 2014 | 2015 | 2016 | Profit margin (PM) on sales=Net income/net sales | Company A | Company B | Company C | |
| Ratio | 1.4 | 1.7 | 1.69 | 1.69 | 0.31 | 0.21 | ||
| Year | 2014 | 2015 | 2016 | Asset Turnover (AT) = Net Sales /Average Total Assets | Company A | Company B | Company C | |
| Ratio | 0.06 | 0.06 | 0.09 | 0.09 | 0.48 | 1.03 | ||
| Year | 2014 | 2015 | 2016 | Equity multiplier (EM) =Average total assets/average total equity | Company A | Company B | Company C | |
| Ratio | 1.2 | 1.23 | 1.23 | 1.23 | 2.39 | 5.2 | ||
| DuPont Framework | ||||||||
| ROE=PMxATxEM | 0.19 | 0.36 | 1.12 | |||||
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Financial Intelligence For IT Professionals
Authors: Julie Bonner
1st Edition
103215294X, 9781032152943
