Calculate ROI, showing margin and turnover, for 20_, 20_and 20__. 5. Calculate ROE for as many of
Question:
Calculate ROI, showing margin and turnover, for 20_, 20_and 20__.
5. Calculate ROE for as many of the past three years as you can.
6. Calculate the price/earnings ratio for as many of the past three years as you can.
7. Calculate the dividend payout and dividend yield ratios for as many of the past three years as you can.
8. Based on the results of your analysis above, assess the company's overall profitability. Explain which ratios indicate particular strengths and/or weaknesses within the company. Assume the following industry averages: ROI = 15%; Margin = 10%; Turnover = 1.5; ROE = 20%; Price/earnings = 14.0; Dividend payout = 40%; Dividend yield = 5%.
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele