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  • Du Pont Analysis BA222 Format

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    Hiếu Thảo
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    This document contains financial data and ratio calculations for a company over 5 years. It presents return on equity (ROE), profit margin (PM), asset turnover (ATO), and financial leverage (FL) for each year. It then analyzes changes in these ratios between years using the DuPont identity to determine the drivers of ROE changes. Interpretation questions are posed to analyze trends in the ratios and the company's performance.

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    This document contains financial data and ratio calculations for a company over 5 years. It presents return on equity (ROE), profit margin (PM), asset turnover (ATO), and financial leverage (FL) for each year. It then analyzes changes in these ratios between years using the DuPont identity to determine the drivers of ROE changes. Interpretation questions are posed to analyze trends in the ratios and the company's performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    13 views3 pages

    Du Pont Analysis BA222 Format

    Uploaded by

    Hiếu Thảo
    This document contains financial data and ratio calculations for a company over 5 years. It presents return on equity (ROE), profit margin (PM), asset turnover (ATO), and financial leverage (FL) for each year. It then analyzes changes in these ratios between years using the DuPont identity to determine the drivers of ROE changes. Interpretation questions are posed to analyze trends in the ratios and the company's performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    Your Name Here

    BA222 Financial Analysis Project


    Schedule 1: Data Collection and Calculation of Ratios

    Company Name Here


    Data Collection

    Sales
    Net Income
    Total Assets
    Stockholders' Equity

    year 5

    year 4

    year 3

    year 2

    year 1

    2010

    2009

    2008

    2007

    2006

    38,063.0
    3,963.0
    69,206.0
    37,519.0

    36,149.0
    3,307.0
    63,117.0
    33,734.0

    37,843.0
    4,427.0
    62,497.0
    32,323.0

    35,510.0
    4,787.0
    60,928.0
    30,753.0

    33,747.0
    3,374.0
    59,998.0
    31,820.0

    3,963.0
    37,519.0
    10.56%

    3,307.0
    33,734.0
    9.80%

    4,427.0
    32,323.0
    13.70%

    4,787.0
    30,753.0
    15.57%

    3,374.0
    31,820.0
    10.60%

    3,963.0
    38,063.0
    10.41%

    3,307.0
    36,149.0
    9.15%

    4,427.0
    37,843.0
    11.70%

    4,787.0
    35,510.0
    13.48%

    3,374.0
    33,747.0
    10.00%

    38,063.0
    69,206.0
    0.5

    36,149.0
    63,117.0
    0.6

    37,843.0
    62,497.0
    0.6

    35,510.0
    60,928.0
    0.6

    33,747.0
    59,998.0
    0.6

    69,206.0
    37,519.0
    $1.84

    63,117.0
    33,734.0
    $1.87

    62,497.0
    32,323.0
    $1.93

    60,928.0
    30,753.0
    $1.98

    59,998.0
    31,820.0
    $1.89

    Calculation of Ratios

    Return on Equity (%)


    Net Income
    div by Stockholders' Equity
    equals ROE

    Profit margin (%)


    Net Income
    div by Sales
    equals PM

    Asset Turnover (Times)


    Sales
    div by Total Assets
    equals ATO

    Financial Leverage ($)


    Total Assets
    div by Stockholders' Equity
    equals FL

    Your Name Here


    BA222 Financial Analysis Project
    Schedule 2: Comparitive Analysis

    ROE

    Company Name Here

    PM

    ATO

    FL

    Year 1
    Year 2
    Incr (Decr)

    10.60% =
    15.57% =
    4.96%

    10.00% x
    13.48% x
    3.48%

    0.562
    0.583
    0.020

    x
    x

    $1.89
    $1.98
    $0.10

    Year 2
    Year 3
    Incr (Decr)

    15.57% =
    13.70% =
    -1.87%

    13.48% x
    11.70% x
    -1.78%

    0.583
    0.606
    0.023

    x
    x

    $1.98
    $1.93
    ($0.05)

    Year 3
    Year 4
    Incr (Decr)

    13.70% =
    9.80% =
    -3.89%

    11.70% x
    9.15% x
    -2.55%

    0.606 x
    0.573 x
    (0.033)

    $1.93
    $1.87
    ($0.06)

    Year 4
    Year 5
    Incr (Decr)

    9.80% =
    10.56% =
    0.76%

    9.15% x
    10.41% x
    1.26%

    0.573 x
    0.550 x
    (0.023)

    $1.87
    $1.84
    ($0.03)

    Year 1
    Year 5
    Incr (Decr)

    10.60% =
    10.56% =
    -0.04%

    10.00% x
    10.41% x
    0.41%

    0.562 x
    0.550 x
    (0.012)

    $1.89
    $1.84
    ($0.04)

    Your Name Here


    BA222 Financial Analysis Project
    Schedule 3: Interpretation
    Company Name Here
    1. Describe what has happened to ROE during the past five years.

    2. Which element of the DoPont Model is most responsible for this behavior PM, ATO or FL?

    3. In part 2 above, can you trace ROE behavior to a specific line item in the
    financial statements (Inventory, COGS, Retained Earnings, etc.)?

    4. If you had $10,000 invested in this company what would you do at this point buy more, hold or sell?

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