Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What are some specific things the company can do to improve performance in the challenge area? (Note: this is the 3rd exercise in the table.

image text in transcribed
image text in transcribed
What are some specific things the company can do to improve performance in the challenge area? (Note: this is the 3rd exercise in the table. I forgot to change the number from 1 to 3) (At least 2 sentences please.) For each example, identify the challenge area in the DuPont Identity. Then, try to pinpoint the problem area from the ratios beneath. 2016 8.20% Example 1 2015 11.00% 2014 9.85% 2016 11.45% Example 2 2015 11.30% 2014 10.87% Example 1 2016 2015 13.14% 12.73% 2014 11.39% NI/Sales DuPont Identity 93.00% 92.50% 88.00% 65.43% 63.80% 59.90% 59.90% 66.45% 69.39% Sales/Assets Assets/Total Equity ROE 280.00% 21.35% 278.50% 28.35% Example 1 276.00% 23.92% 513.52% 38.47% 337.49% 24.33% Example 2 374.61% 24.39% 230.44% 225.45% 18.14% 19.07% Example 1 222.22% 17.56% Gross Margin 55.55% 53.76% 53.00% 44.44% 37.27% 34.82% 27.77% 25.43% 23.12% Profitability Ratios Operating Margin SGA/Revenu 14.00% 16.00% 18.00% 9.54% 9.12% 9.00% 22.45% 20.19% 20.19% 38.00% 7.69% 8.87% 5.55% 45.59% 35.00% Example 1 9.28% Example 2 4.33% 5.81% Example 1 Inventory Turnover av 15 16 iny 31.14 31.00 29.76 23.22 15.75 13.42 52.00 55.34 61.00 Days sales in 11.72 11.77 12.26 15.72 23.17 27.20 7.02 6.60 5.98 Receivables Asset Turnover Ratios Turnover av 15 16 res 52.22 50.04 50.04 58.634.229.92 58.63 11.65 71.11 68.54 68.00 6.99 7.29 86.49 36.81| 31.33 Days sales in receivables Fixed Asset Turnover 5.13 5.33 5.37 1.140 1.270 Example 1 1.243 0.990 0.867 1.570 0.870 Example 2 0.990 1.420 Example 1 Long-term Debt/Assets D/E 0.55 Leverage Ratios 0.64 1.80 0.640.64 1.76 0.70 2.37 0.73 2.75 0.57 1.30 0.56) 1.25 1.79 1.22 Times interest earned 29.92 24.23 10.62 3.33 5.45 10.62 9.54 8.32 7.37

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Led Capitalism Shadow Banking Re Regulation And The Future Of Global Markets

Authors: Robert Guttmann

1st Edition

1137398566, 978-1137398567

More Books

Students also viewed these Finance questions