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Using the following financial statement data, calculate the following ratios for 2013: Operating margin, asset turnover, interest burden, financial leverage, income tax rate, ROE using
Using the following financial statement data, calculate the following ratios for 2013: Operating margin, asset turnover, interest burden, financial leverage, income tax rate, ROE using the dupont formula.
Income statment data | 2005 | 2013 |
---|---|---|
Revenues | 542 | 979 |
Operating income | 38 | 76 |
Depreciation and Amortization | 3 | 9 |
Interst expense | 3 | 0 |
Pretax income | 32 | 67 |
Income taxes | 4 | 27 |
Net income after tax | 28 | 40 |
Balance Sheet | ||
Fixed assets | 41 | 70 |
Total assets | 648 | 898 |
working capital | 123 | 157 |
Total debt | 126 | 60 |
total shareholders equity | 399 | 681 |
Current stock price is $19.23
Discuss how interest burden and asset turnover have impacted ROE from 2005 to 2013.
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