Use the following 2016 financial information for ATT and Verizon to conduct a DuPont system of analysis
Question:
Use the following 2016 financial information for ATT and Verizon to conduct a DuPont system of analysis for each company.
a. Which company has the higher net profit margin? Higher asset turnover?
b. Which company has the higher ROA? The higher ROE?
ATT Verizon $163,786 Sales $125,980 13,608 Earnings available for common stockholders Total assets Stockholders' equity 13,333 403,821 244,180 124,110 24,032
Step by Step Answer:
a Net profit margin Earnings Available to Common Stockholders Sales ...View the full answer
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
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.
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