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%.

  
 
 
 
 

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Consolidated Statements of Operations (millions, except per share data) Sales Cost of sales ( Gross margin Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales)" Gain on sale Earnings from continuing operations before interest expense and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted $ $ $ $ 2017 71,879 $ 51,125 20,754 14,248 2,194 $ 4,312 666 3,646 718 2,928 6 2,934 $ 5.35 $ 0.01 5.36 $ 5.32 $ 0.01 5.33 $ 546.8 3.5 550.3 4.1 2.46 $ 2016 69,495 $ 49,145 20,350 13,356 2,025 4,969 1,004 3,965 1,296 2,669 68 2,737 S 4.62 S 0.12 4.74 $ 4.58 S 0.12 4.70 $ 577.6 4.9 582.5 0.1 2.36 $ 2015 73,785 52,241 21,544 14,665 1,969 (620) 5,530 607 4,923 1.602 3,321 42 3,363 Antidilutive shares Dividends declared per share Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. ( See accompanying Notes to Consolidated Financial Statements. 5.29 0.07 5.35 5.25 0.07 5.31 627.7 5.2 632.9 2.20 Consolidated Statements of Operations (millions, except per share data) Sales Cost of sales ( Gross margin Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales)" Gain on sale Earnings from continuing operations before interest expense and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted $ $ $ $ 2017 71,879 $ 51,125 20,754 14,248 2,194 $ 4,312 666 3,646 718 2,928 6 2,934 $ 5.35 $ 0.01 5.36 $ 5.32 $ 0.01 5.33 $ 546.8 3.5 550.3 4.1 2.46 $ 2016 69,495 $ 49,145 20,350 13,356 2,025 4,969 1,004 3,965 1,296 2,669 68 2,737 S 4.62 S 0.12 4.74 $ 4.58 S 0.12 4.70 $ 577.6 4.9 582.5 0.1 2.36 $ 2015 73,785 52,241 21,544 14,665 1,969 (620) 5,530 607 4,923 1.602 3,321 42 3,363 Antidilutive shares Dividends declared per share Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. ( See accompanying Notes to Consolidated Financial Statements. 5.29 0.07 5.35 5.25 0.07 5.31 627.7 5.2 632.9 2.20

Answer rating: 100% (QA)

To calculate the Return on Investment ROI over the last three years we need two components net profit margin and asset turnover The ROI formula is as follows ROI Net Profit Margin Asset Turnover Net P... View the full answer