Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following data were taken from Tetracos 2017-2019 annual reports 2017 2018 2019 Sales 45,187 30,910 34,975 EBIT 3,847 1,124 2,083 Pretax Income 3,327 701

The following data were taken from Tetracos 2017-2019 annual reports

2017

2018

2019

Sales

45,187

30,910

34,975

EBIT

3,847

1,124

2,083

Pretax Income

3,327

701

1,779

Net Income

2,664

603

1,177

Assets

29,600

28,570

28,972

Equity

12,766

11,833

12,042

Instructions:

Your colleague has carried out the first round of analysis of the above figures and concluded that the company's return to the stockholders has been considerably improving over the highlighted three years mainly due to leverage.

Carry out a second round of analysis to determine your position regarding the company and if you agree with your colleague or not. Explain your position (whether you agree or not) by carrying out full Du Pont Analysis highlighting the main strengths and weaknesses of the company's return to its stockholders.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

11th Global Edition

1292094184, 978-1292094182

More Books

Students also viewed these Finance questions