Question

Go to a Web site such as Yahoo.com and find the sales, net income, total assets, and total equity of the following five actively traded companies: Microsoft (MSFT), Boeing (BA),Wal-Mart (WMT), Procter and Gamble (PG), and Waste Management (WMI). Use the three components of the DuPont identity—operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity)—to find the return on equity for these five companies. Based on these components and the ROE, which company do you think is doing the best job for its shareholders?



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  • CreatedMay 08, 2014
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