re given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two compani
re given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two compani
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two companies’ performances based on these numbers?

Transcribed Image Text:Exhibit 6 DuPont Decomposition of Ahold and Tesco
X
Xx
=
Decomposing
Profitability
NI/Sales
Sales/Beg Total
Assets
Beg Total
Assets/Beg Equity
ROE
(ROA*Financial
Leverage)
FY2009
3.20%
2.05
2.90
19.07%
Ahold
FY2010 FY2011
2.89%
2.12
2.56
15.68%
3.36%
1d Gum Can
2.06
2.49
17.21%
FY2009
4.09%
1.25
3.53
18.11%
Tesco
2010
FY2010
4.39%
1.31
3.13
18.19%
FY2011
4.35%
1.37
2.84
16.97%
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