Problem 3-26

DuPont system of analysis Use the following 2016 financial information for ATT and Verizon to conduct a DuPont system of analysis for each company.

ATT Verizon Sales $163,786 $125,980 Earnings available for common stockholders 13,333 13,608 Total assets 403,821 244,180 Stockholders equity 124,110 24,032

a. Which company has the higher net profit margin? Higher asset turnover?

b. Which company has the higher ROA? The higher ROE? Answers (insert your answers in the highlighted cells; use cell references, equations, and functions wherever possible)

a. ATT Verizon Net profit margin Asset turnover Discussion:

b. ATT Verizon ROA ROE Discussion: