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Essentials Of Investments
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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DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to: a. Construct the DuPont system of analysis for both Johnson and the industry. b. Evaluate Johnson (and the industry) over the 3-year period. c. Indicate in which areas Johnson requires further analysis. Why? Johnson 2010 2011 2012 Financial leverage multiplier 1.75 1.75 1.85 Net profit margin 0.059 0.058 0.049 Total asset turnover 2.11 2.18 2.34 Industry Averages Financial leverage multiplier Net profit margin 1.67 1.69 1.64 0.054 0.047 0.041 Total asset turnover 2.05 2.13 2.15
Transcribed Image Text:DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to: a. Construct the DuPont system of analysis for both Johnson and the industry. b. Evaluate Johnson (and the industry) over the 3-year period. c. Indicate in which areas Johnson requires further analysis. Why? Johnson 2010 2011 2012 Financial leverage multiplier 1.75 1.75 1.85 Net profit margin 0.059 0.058 0.049 Total asset turnover 2.11 2.18 2.34 Industry Averages Financial leverage multiplier Net profit margin 1.67 1.69 1.64 0.054 0.047 0.041 Total asset turnover 2.05 2.13 2.15
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