Use the DuPont equation to provide a summary and overview of DLeons financial condition as projected for 2017. What are the firms major strengths and weaknesses?

	2017E	2016	2015
Sales	$ 7,035,600	$ 6,034,000	$ 3,432,000
Cost of goods sold	5,875,992	5,528,000	2,864,000
Other expenses	550,000	519,988	358,672
Total operating costs excluding depreciation and amortization	$ 6,425,992	$ 6,047,988	$ 3,222,672
EBITDA	$ 609,608	($ 13,988)	$ 209,328
Depreciation and amortization	116,960	116,960	18,900
Interest expense	70,000	136,012	43,828
EBIT	$ 492,640	($ 130,948)	$ 190,428
Taxes (40%)	169,056	(106,784) *	58,640
Net Income	$ 253,584	$ 160,176	$ 87,960
EPS	$ 1.014	($ 1.602)	$ 0.880
DPS	$ 0.220	$ 0.110	$ 0.220
Book Value per share	$ 7.809	$ 4.926	$ 6.638
Stock Price	$ 12.17	$ 2.25	$ 8.50
Shares outstanding	250,000	100,000	100,000
Tax rate	40.00%	40.00%	40.00%
Lease payments	$ 40,000	$ 40,000	$ 40,000
Sinking fund payments	0	0	0

Note E indicates estimated. The 2017 data are forecasts. * The firm had sufficient taxable income in 2014 and 2015 to obtain its full tax refund in 2016

Ratio Analysis:

	2017E	2016	2015	Industry Average
Current	2.34 x	1.2 x	2.3 x	2.7 x
Quick	0.842 x	0.4 x	0.8 x	1.0 x
Inventory turnover	4.1 x	4.7 x	4.8 x	6.1 x
Days sales outstanding (DSO)*	45.5	38.2	37.4	32.0
Fixed assets turnover	8.6 x	6.4 x	10.0 x	7.0 x
Total assets turnover	2.0 x	2.1 x	2.3 x	2.6 x
Debt-to-capital ratio	44.2 %	73.4%	44.1%	40.0%
TIE	7.04 x	-1.0 x	4.3 x	6.2 x
Operating margin	7.0%	-2.2%	5.5%	7.3%
Profit margin	3.6 %	-2.7%	2.6%	3.5%
Basic earning power	14.1%	-4.6%	13.0%	19.1%
ROA	7.2%	-5.6%	6.0%	9.1%
ROE	13.0%	-32.5%	13.3%	18.2%
ROIC	20.7%	-4.2%	9.6%	14.5%
Price/earning	12 x	-1.4 x	9.7 x	14.2 x
Market/book	1.56 x	0.5 x	1.3 x	2.4 x
Book value per share		$4.93	$6.64	n.a