Required: Compute the DuPont ratios (profit margin, asset turnover, and financial leverage ratios) for Amazon and Kroger given these numbers for 2012-2017. Check your numbers to make sure that Profit marginx Asset turnover x Financial leverage = Return on equity. (Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required:
Compute the DuPont ratlos (profit margin, asset turnover, and financial leverage ratlos) for Amazon and Kroger given these numbers
for 2012-2017. Check your numbers to make sure that Profit margin x Asset turnover Financial leverage = Return on equity.
(Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)
Data: Problem 6-2 Data.xlsx. (Students can download this data file solve this problem.)
AMZN
KR
Year
2017
2016
2015
2014
2013
2012
Year
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
Year
Year
Sales Revenue
$177,866,000,000
$135,987,000,000
$107,006,000,000 $ 596,000,000
$ 88,988,000,000 $ (241,000,000) $54,505,000,000
$ 74,452,000,000 $ 274,000,000 $ 40,159,000,000
$ 61,093,000,000 $ (39,000,000) $32,555,000,000
Sales Revenue
$122,662,000,000
$115,337,000,000
$109,830,000,000
$108,465,000,000
$ 98,375,000,000
$ 96,619,000,000
Net Income
Assets
$131,310,000,000
$ 3,033,000,000
$ 2,371,000,000 $ 83,402,000,000
$ 64,747,000,000
Profit Margin
Profit Margin
Net Income
$ 1,889,000,000
$ 1,957,000,000
$ 2,049,000,000
$ 1,747,000,000
$ 1,531,000,000
$ 1,508,000,000
AMZN
Asset
Turnover
KR
Asset
Turnover
Financial
Leverage
Financial
Leverage
Assets
$37,197,000,000
$36,505,000,000
$33,897,000,000
$30,497,000,000
$29,281,000,000
$24,634,000,000
Return on
Equity
Return on
Equity
Stockholders'
Equity
$27,709,000,000
$19,285,000,000
$13,384,000,000
$10,741,000,000
$ 9,746,000,000
$ 8,192,000,000
Stockholders'
Equity
$ 6,905,000,000
$ 6,710,000,000
$ 6,798,000,000
$ 5,442,000,000
$5,395,000,000
$ 4,214,000,000
Transcribed Image Text:Required: Compute the DuPont ratlos (profit margin, asset turnover, and financial leverage ratlos) for Amazon and Kroger given these numbers for 2012-2017. Check your numbers to make sure that Profit margin x Asset turnover Financial leverage = Return on equity. (Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.) Data: Problem 6-2 Data.xlsx. (Students can download this data file solve this problem.) AMZN KR Year 2017 2016 2015 2014 2013 2012 Year 2017 2016 2015 2014 2013 2012 2017 2016 2015 2014 2013 2012 2017 2016 2015 2014 2013 2012 Year Year Sales Revenue $177,866,000,000 $135,987,000,000 $107,006,000,000 $ 596,000,000 $ 88,988,000,000 $ (241,000,000) $54,505,000,000 $ 74,452,000,000 $ 274,000,000 $ 40,159,000,000 $ 61,093,000,000 $ (39,000,000) $32,555,000,000 Sales Revenue $122,662,000,000 $115,337,000,000 $109,830,000,000 $108,465,000,000 $ 98,375,000,000 $ 96,619,000,000 Net Income Assets $131,310,000,000 $ 3,033,000,000 $ 2,371,000,000 $ 83,402,000,000 $ 64,747,000,000 Profit Margin Profit Margin Net Income $ 1,889,000,000 $ 1,957,000,000 $ 2,049,000,000 $ 1,747,000,000 $ 1,531,000,000 $ 1,508,000,000 AMZN Asset Turnover KR Asset Turnover Financial Leverage Financial Leverage Assets $37,197,000,000 $36,505,000,000 $33,897,000,000 $30,497,000,000 $29,281,000,000 $24,634,000,000 Return on Equity Return on Equity Stockholders' Equity $27,709,000,000 $19,285,000,000 $13,384,000,000 $10,741,000,000 $ 9,746,000,000 $ 8,192,000,000 Stockholders' Equity $ 6,905,000,000 $ 6,710,000,000 $ 6,798,000,000 $ 5,442,000,000 $5,395,000,000 $ 4,214,000,000
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