Using the Microsoft excel screenshots provided and the companies annual reports from 2018-2022, analyze and discuss profitability using a modified DuPont analysis for Cochlear Limited (COH). Sustainable growth rate and cash flow analysis must be discussed and analyzed in depth. Reasons for changes from year to year must be given.

A B DuPont Analysis Cochlear Limited (COH) 2018 2019 2020 2021 2022 2023 2024 2025 Y/E 30-June, (AUD $) . Traditional DuPont Cochlear Limited (COH) 2018 2019 2020 2021 2022 Net income / Average Shareholders Equity N/A 41.4% (22.4%) 21.0% 17.1% 10 Return on Equity % 11 12 Net Income / Sales 8.0% 19.4% (18.0%) 21.6% 17.5% Profit Margin Sales / Average Total Assets N/A 1.13 0.67 0.60 0.67 13 Asset Turnover Ratio 14 19 10 Leverage Ratio Average Total Assets / Average Shareholders Equity N/A 15 17.1% 16 ROE on Equity Profit Margin * Asset Turnover * Leverage NIA 41.4% (22.4% 21.0% 17 OK OK OK OK OK Check 1.15 2.95 Dividend per Share 2.45 2.76 2.95 72.8% 64.1% (89.4%) 21.1% 106.4% Assume no change to policy on D/E, Dividend and Dividend payout Dividend Payout Ratio NA 14.99 (42.4%) 16.5% (1.1% Sustainable Growth RateCochlear Limited (COH) - ROE and NOPAT 50.0% 40.0% 30.0% 20.0% 10.0% 2018 2019 120 2021 2022 2023 (10.0%) (20.0%) (30.0%) Retum on Equity = NOPAT Margin Cochlear Limited (COH) - ROE components 3.00 100.0% 2.50 50.0% 2.00 1.50 1.00 0.50 WILL (50.0%) (100.0%) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 (0.50) (150.0%) Operating Asset Turnover RNOA Cost of Debt Spread Financial Leverage lote: Column data may be read from LHS axis and Line data read from the RHS axisStandardised Financial Statements Cochlear Limited (COH) YIE 30-June, (AUD $) 2018 2019 2020 2021 2022 Cash Flow Statement Cochlear Limited (COH) Cash Flow Analysis $1,400 YIE 30-June, (AUD $) 2018 2019 2020 2021 2022 $1,200 Receipts from Customers 1,350,300,000 1,448,500,000 1,403,700,000 1,436,000,000 1,611,800,000 $1,000 Income Tax Received Interest Received 600,000 700.000 1,600,000 3,600.000 2,400,000 $800 Payments to Suppliers and Employees (987,800,000) (1,064,700,000) (1,501,600,000) (1,156,100,000) (1,215,000,000) Income Tax Paid (101,300,000) (90,700,000) (80,100,000) (14,400,000) (26,100,000) Interest Paid (8,500,000) (5,200,000) (10.500,000) (12,000,000) (8,600,000) $400 Other Operating Cash Flows 4,800,000 7.400,000 29.100.000 8,300,000 12.000.000 Millions 5200 Net Cash Flow from Operations 258,100,000 296,000,000 (157,800,000) 265,400,000 376,500,000 Proceeds from sale of PPE 300,000 Proceeds from Investment in other financial assets 365,000,000 $300 Purchase of PPE (28,400,000) (59,900,000) (92,900,000) (41,200,000) (44,500,000) 5400 Purchase of Intangibles (21,300,000) (54,700,000) (37.600,000) (25.500,000) (32.700,000) Acquisition (sale) of subsidiaries -5600 Investments in other financial assets (6,000,000) (23,200,000) (379,200,000) (18,400,000) (61,700,000) 2018 2019 2020 2021 2022 let Cash Flow from Investing (55,400,000) (137,800,000) (509,700,000) 279,900,000 (138,900,000) -Net Cash Flow from Operations Net Cash Flow from Investing -Net Cash Flow from Financing Proceeds of loan advances 250,000,000 439,100,000 420,900,000 1,700,000 Proceeds from share issues 1,075,600,000 Dividends Paid (161,100,000) (181,800,000) (193,700,000) (75,600,000) (194,000,000) Repayment of Loan Advances (321,200,000) (405,600,000) (154,600,000) (423,600,000) (25,600,000) Other Financing Cash Flows (400.000) 7400000 8300000 2400000 -1100000 Net Cash Flow from Financing (232,700,000) (140.900,000) 1,154,500,000 (495,100,000) (220.700,000) Net increase decrease in cash held (30,000,000) 17,300,000 487,000,000 50,200,000 16,900.000