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Use the DuPont equation to calculate the return on equity (ROE). In the process, calculate the following ratios: profit margin, EBIT return on assets, return
Use the DuPont equation to calculate the return on equity (ROE). In the process, calculate the following ratios: profit margin, EBIT return on assets, return on assets, equity multiplier, and total asset turnover. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.)
Net profit margin | enter percentages | % | |
---|---|---|---|
EBIT ROA | enter percentages | % | |
Return on assets | enter percentages | % | |
Equity multiplier | enter Equity multiplier | ||
Total asset turnover | enter Total asset turnover | ||
ROE | enter percentages | % |
Oriole Supply Company Balance Sheet as of June 30, 2017($ thousands) Assets: Cash and marketable securities $394,400 Accounts receivable 706,300 Inventory 1,150,600 Other current assets 40,800 Total current assets $2,292,100 Net plant and equipment 1,982,500 Liabilities and Equity: Accounts payable Notes payable Accrued income taxes Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $817,400 101,200 41,900 $960,500 1,149,400 $2,109,900 1,312,200 852,500 $2,164,700 $4,274,600 Total assets $4,274,600 Use the DuPont equation to calculate the return on equity (ROE). In the process, calculate the following ratios: profit margin, EBIT return on assets, return on assets, equity multiplier, and total asset turnover. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % EBIT ROA % Return on assets % Equity multiplier Total asset turnover ROE % The balance sheet and income statement for Oriole Supply Company for the fiscal year ended June 30, 2017 is as follows. Oriole Supply Company Income Statement for the Fiscal Year Ended June 30, 2017($ thousands) Net sales Cost of goods sold Selling and administrative expenses Nonrecurring expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (35%) $2,149,900 1,459,400 312,100 27,300 $351,100 112,300 238,800 117,500 $121,300 42,455 $78,845 Net income
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