In your position as research assistant to a portfolio manager, you need to analyze the profitability of

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In your position as research assistant to a portfolio manager, you need to analyze the profitability of the companies in the portfolio. Using the data for 3M Co. below:
In your position as research assistant to a portfolio manager,

a. Calculate the net profit margin for each year.
b. Calculate the average annual growth rates for revenue and net income using the GEOMEAN function. Is net income growing more slowly or faster than total revenue? Is this a positive for your investment in the company?
c. Calculate the average annual growth rate of total revenue using the AVERAGE function. Is this result more or less accurate than your result in the previous question? Why?
d. Create a Column chart of total revenue and net income. Be sure to change the chart so that the x-axis labels contain the year numbers, and format the axis so that 2013 is on the far right side of the axis.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Related Book For  book-img-for-question

Financial Analysis with Microsoft Excel

ISBN: 978-1285432274

7th edition

Authors: Timothy R. Mayes, Todd M. Shank

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