Question
The following financial information is given about company X and the benchmark company B. Using this information compare the company X with the benchmark company
The following financial information is given about company X and the benchmark company B. Using this information compare the company X with the benchmark company B. Use Dupont's framework, calculate 6 ratios in this framework for both companies and point out the strengths and weaknesses. Don't use ROE to compare companies. Based on your analysis find the weakness of the company against the benchmark. What is the ratio of the company that points out a weakness? Enter the ratio (as a number) that points out the weakness as your answer for this question.
| Company X | Company B |
Interest rate | 0.12 | 0.15 |
COGS | 600 | 600 |
Tax rate | 0.21 | 0.25 |
Assets | 550 | 750 |
Sales Revenue | 800 | 900 |
Debt | 250 | 400 |
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