Find online the annual 10-K report for Peets Coffee and Tea (PEET) for 2008 (filed in early

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Find online the annual 10-K report for Peet’s Coffee and Tea (PEET) for 2008 (filed in early 2009).

a. Compute Peet’s net profit margin, total asset turnover, and equity multiplier.

b. Verify the DuPont Identity for Peet’s ROE.

c. If Peet’s managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be?


Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
DuPont Identity
The DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...
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