A Company uses the DuPont system to analyze its financial performance. The following data is available: Metric Value Leverage ratio (assets/equity) 2.8 Total asset turnover 2.5 Net profit margin 3.5% Dividend payout ratio 30.0% Required: Calculate Return on Equity (ROE) using the DuPont formula.

A Company uses the DuPont system to analyze its financial performance. The following data is available: Metric Value Leverage ratio (assets/equity) 2.8 Total asset turnover 2.5 Net profit margin 3.5% Dividend payout ratio 30.0% Required: Calculate Return on Equity (ROE) using the DuPont formula.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...

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Solve this financial accounting problem

A Company uses the DuPont system to analyze its financial
performance. The following data is available:
Metric
Value
Leverage ratio (assets/equity) 2.8
Total asset turnover
2.5
Net profit margin
3.5%
Dividend payout ratio
30.0%
Required:
Calculate Return on Equity (ROE) using the DuPont formula.

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Answer? ? Financial accounting
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Using the statements provided Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on assets Return on stockholders’ equity For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2% A competitor of ACME has for the same time period reported the following three ratios: Current ratio 1.52Long-term debt to equity .25 or 25%Net profit margin .08 or 8% Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.
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DuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a DuPont system of analysis for each company. Sales Earnings available for common stockholders Total assets Stockholders' equity a. Which company has the higher net profit margin? Higher asset turnover? b. Which company has the higher ROA? The higher ROE? c. Which company has the higher financial leverage multiplier? a. Net profit margin (Round to three decimal places.) AT&T Net profit margin AT&T $164,000 13,333 403,921 201,934 Verizon Verizon $126,280 13,608 244,280 24,232
a)Please calculate the all ratios of companies - Profitability ratios(Profit margin, Return on assets ,Return on equity) Asset utilization ratios (Receivables turnover, Average collection period, Inventory turnover, Fixed asset turnover, Total asset turnover) Liquidity ratios (Current ratio, Quick ratio) & Debt utilization ratios (Debt total assets, Times interest earned, Fixed charge coverage) b) Calculate all your ratios in and Excel File. You need to show all your calculations in excel file but use the calculated value in your main report. [Note:The answer should be based on "Canadian national railway annual report 2016 and 2017"]
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