Apply DuPont Disaggregation of ROESelected balance sheet and income statement information for Home Depot follows.$ millionsJan. 31, 2016 Feb. 01, 2015Total assets$42,824$40,221Total liabilities36,30330,694Sales88,999Net income7,158Round answers to two decimal places (ex: 0.12345 = 12.35%)a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage.ROE: 0ROA: 0Financial leverage: 0b. Disaggregate ROA in to profitability and productivity components.Profit margin 0%Asset turnoverCheck

Dupont Analysis is technique used in ratio analysis that helps to bifurcate different drivers of the…

Answered: Apply DuPont Disaggregation of ROE…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881…
Disaggregate Traditional DuPont ROE Graphical representations of the KLA-Tencor 2018 income statement and average balance sheet numbers (2017-2018) follow ($ thousands). KLA-Tencor Average Balance Sheet 2017-2018 $1,473,464 O $2,583,930 -$2,627,235.5 $1,518,3711 Operating assets Nonoperating assets Operating labilities Nonoperating Babies Equity + 0 수 $2.948.529 0 KLA-Tencor Income Statement 2018 $802,265 $653.666- ✪ 0 O $81,263 a. Compute return on equity (ROE). Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE. Numerator Denominator ROE Operating expenses Tax expense 수 0 b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROA. Numerator Denominator ROA 수 0…
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Operating and Nonoperating Items in Boston Scientific's Income Statement EXHIBIT 3.6 For Year Ended December 31, S mllllons 2018 2017 2016 Net sale . Cost of products sold $9,823 $9,048 2,593 $8,386 2,424 2,813 Gross profit. Operating expenses Selllng, general and admlnIstratlve expenses. Research and development expenses Royalty expense Amortlzatlon expense Intanglble asset Impalrment charges ContIngent conslderatlon expense (beneflt) . RestructurIng charges. LItigatlon-related charges 7,010 6,455 5,962 3,569 1,113 3,294 3,099 997 920 70 68 79 599 565 545 35 4 11 (21) (80) 29 36 37 28 103 285 804 Operating expenses - 5,504 5,170 5,515 Operating income . Other expense (income) Interest expense 1,506 1,285 447 241 229 233 Other expense (income), net. (156) 124 37 Income before income taxes 1,422 932 177 Income tax expense (benefit) . (249) 828 (170) Net income. $1,671 $ 104 $ 347 Calculate the operating expense margin ratio for 2016
Analysis and Interpretation of ProfitabilityBalance sheets and income statements for 3M Company follow. 3M COMPANY Consolidated Statements of Income For Years ended December 31 ($ millions) 2018 2017 Net sales $32,765 $31,657 Operating expenses Cost of sales 16,682 16,055 Selling, general and administrative expenses 7,602 6,626 Research, development and related expenses 1,821 1,870 Gain on sale of businesses (547) (586) Total operating expenses 25,558 23,965 Operating income 7,207 7,692 Other expense, net* 207 144 Income before income taxes 7,000 7,548 Provision for income taxes 1,637 2,679 Net income including noncontrolling interest 5,363 4,869 Less: Net income attributable to noncontrolling interest 14 11 Net income attributable to 3M $ 5,349 $ 4,858 *Interest expense, gross $350 million in 2018 and $322 million in 2017. 3M COMPANY Consolidated Balance Sheets At December 31 ($ millions, except per share amount) 2018 2017…
Analysis and Interpretation of ProfitabilityBalance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) September 2, 2018 Total revenue $141,576 Operating expenses Merchandise costs 123,152 Selling, general and administrative 13,876 Preopening expenses 68 Operating Income 4,480 Other income (expense) Interest expense 159 Interest income and other, net (121) Income before income taxes 4,442 Provision for income taxes 1,263 Net income including noncontrolling interests 3,179 Net income attributable to noncontrolling interests (45) Net income attributable to Costco $3,134 Costco Wholesale Corporation Consolidated Balance Sheets ($ millions, except par value and share data) September 2, 2018 September 3, 2017 Current assets Cash and cash equivalents $6,055 $4,546 Short-term investments 1,204 1,233…
Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable (net) Inventory Total assets Total common stockholders' equity a. b. C. d. e. Profit margin Asset turnover Return on assets 2025 $5,050.3 Gross profit rate 3,700.7 65.1 65.0 1.250.1 Compute the following ratios for 2025. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) 2,950.1 940.6 Return on common stockholders' equity 2024 $5,800.9 3,200.1 190.9 106.6 1,350.1 3,250.1 1,100.5 % times % % %
Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statements from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each income statement amount as a percentage of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statement ($ millions) Sales Pfizer Dr. Reddy's $46,136 0% $1,876 09 Cost of goods sold 11,248 0% 1,009 0% Gross profit 34,888 0% 867 0% Total expenses Net income 26,841 $8,047 0% 0% 878 $(11) 0% 0% b. Following are selected balance sheets from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each balance sheet amount as a percentage of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Balance Sheet ($ millions) Pfizer Dr. Reddy's Current assets $42,936 0% $1,448 0% Long-term assets Total assets 109,496 $152,432 0% 1,781 096 0% $3,229 09…
Analysis and Interpretation of Ratios When RNOA Exceeds ROE Refer to the balance sheets and income statement below for Facebook Inc. FACEBOOK INC. Consolidated Statement of Income For Year Ended December 31, $ millions 2018 Revenue $55,838 Costs and expenses Cost of revenue 9,355 Research and development 10,273 Marketing and sales 7,846 General and administrative 3,451 Total costs and expenses 30,925 Income from operations 24,913 Interest and other income (expense), net 448 Income before provision for income taxes 25,361 Provision for income taxes 3,249 Net income $22,112 FACEBOOK INC. Consolidated Balance Sheet At December 31, $ millions 2018 2017 Current assets Cash and cash equivalents $10,019 $8,079 Marketable securities 31,095 33,632 Accounts receivable, net 7,587 5,832 Prepaid expenses and other current assets 1,779 1,020 Total current assets 50,480 48,563 Property and equipment, net 24,683 13,721 Intangible…
Asset Efficiency Ratios Sammy Inc.'s financial statements for 2023 indicate the following account balances: Net sales Cost of goods sold Average accounts receivable Average inventory Average property, plant, and equipment Average total assets. Required: Round your answers to two decimal places. 1. Using this information, calculate Sammy's receivable turnover ratio. $307,608 170,100 21,329 3,960 85,367 144,140 2. Using this information, calculate Sammy's asset turnover ratio and also convert the ratio into days. Assume 365 days in a year. Round your answer to nearest whole day. Asset turnover ratio Conversion into days days
Current Attempt in Progress Using these data from the comparative balance sheets of Ivanhoe Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%).) Accounts receivable (net) Inventory Total assets e Textbook and Media December 31, 2022 $496,800 787,500 3,188,360 December 31, 2021 $414,000 SA VA 630,000 $ 2,702,000 $ SA Amount Increase or (Decrease) Percentage % % %

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