Question
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.
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