For the following firms, find the return on equity using the three components of the DuPont identity:
Question:
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.
Transcribed Image Text:
Financial Information ($ in millions, 2013) Company Sales Net Income Total Assets Liabilities PepsiCo $6,740 $77,487 $53,199 $6,415 Coca-Cola $90,055 $56,882 $8,584 $46,854 $5,856 $36,626 $20,617 $28,106 McDonald's
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
First find the equity of each company ie Total Assets less Total Liabilities Pepsis E...View the full answer
Answered By
Vipin Kumar Dhiman
I am graduated in Electrical Engineering in 2017 from UTU, DEHRADUN(INDIA). After that, I started giving tuition on different subjects based on Electrical Engineering. In 2018 after qualifying Graduate Aptitude Test in Engineering(GATE), I started doing post-graduation in the specialization of Power Electronics and Drives in the National Institute of Technology, Kurukshetra which is an Institute of National Importance. While doing post-graduation I develop the skill of teaching and free extra classes for poor students on signal systems, network theory and MATLAB. I have experience teaching about 120 students in a single class. I used to help my friends during exam and during that time started developing teaching skills.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Financial Accounting questions
-
Using the three components of the fraud triangle, explain why a student may cheat on an exam.
-
Total assets turnover 15 Gross profit margin on sales SalesCost of goods soldSales 25 Total liabilitiestoassets ratio 40 Quick ratio 080 Days sales outstanding based on 365day year 365 days Inventory...
-
Firms with a return on net operating assets (RNOA) that is higher than the required return on operations are adding value with their investments and so should trade at a premium over their book...
-
Necked Amber purchased a bond for $1,038.90 exactly two years ago. At that time, the bond had a maturity of five years and a coupon rate of 10% (paid semi-annually). Assuming the rates below are the...
-
A certain force gives an object of mass m1 an acceleration of 12.0 m/s2 and an object of mass wt2 ?rr acceleration of 3.30 m/s2. What acceleration would the force give to an object of mass? (a) m2 ...
-
The following footnote appeared in a recent financial statement of The Coca-Cola Company. We classify time deposits and other investments that are highly liquid and have maturities of three months or...
-
The Object Adapter pattern has great potential for design. Provide examples.
-
Your client, Lewison International, has informed you that it has reached an agreement with Herro Company to acquire all of Herros assets. This transaction will be accomplished through the issue of...
-
AERO3630 Aerodynamics (Degree) HO Table 1: Atmospheric Data Potential Flow Experiment T 22 C T 295.15 K Patm 103200 Pa Patm 1.278 kg m-3 Table 2: Test Parameters Test 1 Test 2 PT 136 mm HO 205 mm HO...
-
Case: A fertilizer company, Pizza and Urea, is located near a village, Payamudirsholai on the banks of river Pamba. One day, the villagers find fish dying due to fluid waste from the fertilizer...
-
Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler...
-
Construct the Barron Pizza Inc. balance sheet statement for December 31, 2015, with the following information: Retained earnings: $43,743 Accounts payable: $74,633 Accounts receivable: $34,836 Common...
-
Show that edge (u, ) is a. a tree edge or forward edge if and only if u.d < .d < .f < u.f, b. a back edge if and only if .d u.d < u.f .f, and c. a cross edge if and only if .d < .f < u.d < u.f.
-
An attractive brochure that had been printed recently, although neither dated nor distributed to prospective patients, described Dr. Earle Shouldice, the founder of the hospital: Dr. Shouldices...
-
In mid-2002, Christine Day, Starbucks Senior Vice President of Administration in North America, sat in the seventh-floor conference room of Starbucks Seattle headquarters and reached for her second...
-
Determine the values of the degeneracy discriminant \(\left(n \lambda^{3}ight)\) for hydrogen, helium, and oxygen at NTP. Make an estimate of the respective temperature ranges where the magnitude of...
-
Find an online resource or social media website related to your professional work field. Find out what other professionals in your field are doing to maintain an optimal worklife balance. Websites...
-
Late in 2013, KidZanias management team, under the leadership of Xavier Lopez Ancona, held its latest meeting at the companys Mexico City headquarters to discuss the possible roll-out to other...
-
On January 1, 2018, the Landon Capital Partners issued $600,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end...
-
Nitrogen monoxide reacts with hydrogen as follows: 2NO(g)+ H2(g) N2O(g) + H2O(g) The rate law is [H2]/ t = k[NO]2[H2], where k is 1.10 107 L2/(mol2s) at 826oC. A vessel contains NO and H2 at...
-
Based on the ratios calculated in problem 4 above, and in conjunction with the industry averages given, conduct a DuPont analysis on Trimarks key profitability ratios.
-
What is the function of the Small Business Administration in regard to business loans? Who receives the guaranty on the loans?
-
What is the difference between an angel investor and a venture capitalist? What event do these investors want to see happen? Why?
-
Multiplication of signed operands, which generate a double-length product in the 2's-complement 100 11 MULTIPLICAND (-13) 0 10 1 1 MULTIPLIER (+11) number system. The general strategy is the...
-
panel = Drawing Panel (160, 160) for i in range (0, 10): panel.draw rectangle (20, 20 + 100 10 * 1, 10 i, 10) Write variations of the above program that draw the figures at the lower right as output....
-
John estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -5,700 3 1 1,325 4 2 2,148 5 3 3,528 The required return for the project is 8%. What is the IRR for the project?
Study smarter with the SolutionInn App