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These are the calculation answers to help you solve: A. Current Ratio = 0.909:1 B. Profit margin can be calculated at 3 level. Gross Profit
These are the calculation answers to help you solve:
A. Current Ratio = 0.909:1
B. Profit margin can be calculated at 3 level.
Gross Profit Margin = 13%
Operating Profit Margin = 2%
Net Profit Margin = 0.9%
C. Return on equity = 90%
D. Total Asset Turnover = 2.77
E. Equity Multiplier = 2.22
2) DuPont Analysis: Use the calculated results in previous questions to fill in the blanks in the table below. Conduct DuPont Analysis on Company XYZ by comparing its performance in each ratio to the industry average: ROE Profit Margin Total Asset Turnover Equity Multiplier Corporation XYZ 49.57% 12% 2.43 1.7 Comparison Benchmark: Industry Average For each ratio, is the company performing "better than" or "worse than the industry average? 3) Comments and Suggestions: Based on the calculations and comparison above, what recommendations/suggestions would you give to this company in terms of its management skills, debt management, profitability, in order to have a real improvement of its overall business performance? Provide 3 specific suggestions using what you have learned from Chapters 3 and 4Step by Step Solution
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