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Topic: ROE Comparison Return on equity (ROE) is a common measure of profitability. For this discussion, you will calculate ROES from real-world financial statements
Topic: ROE Comparison Return on equity (ROE) is a common measure of profitability. For this discussion, you will calculate ROES from real-world financial statements to analyze the profitability of Amazon and NetFlix. Part 1: Collect Information For the years 2017-2020, collect the following information on Amazon and NetFlix: total revenue, net income, total assets, and shareholders' equity. A great source for this information is finance.yahoo.com e. Below is a short primer on how to collect the information from Yahoo Finance. Discussion_ROE_Finance Yahoo #3 80FD $ 44 888 % 205 A 6 V1 & 27 E R T 1 Y U Add a Me Save 4 FIO * 8 9 O D F G H J O P K L C V B N M V- H command n Module 3 Discussion: ROE Comparison 0:00 /2:48 CC 1x onal Part 2: Calculate ROES For each firm and year, calculate ROE and the three components of the DuPont Identity: profit margin, total asset turnover, and the equity multiplier. Post a short summary of your results. Part 3: Analyze ROES What has happened to each firm's ROE between 2017 and 2020? Using the DuPont Decomposition, explain the factors that have led to the change in each firm's ROE. Part 4: Analyze Analysis If you were hired to analyze the profitability of NetFlix, would you select Amazon as a peer firm to use to evaluate NetFlix's ROE? Why or why not? F2 # 3 80F3 888F4 54 $ E R D % 205 F5 9> 6 & 27 F7 T Y U F G H *8 J Add a I 9 Me Save F9 K F10 L C V B N M V H P command
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