Complete the following analysis for Ferrari NV (professor will demonstrate the process).

1. Calculate the DuPont return on equity (ROE) (3-step DuPont) for Ferrari NV for the latest three years of financial statement data.
   1. DuPont ROE = Profit Margin Total Asset Turnover Equity Multiplier or Financial Leverage
      1. Profit Margin = (Net Income Revenues)
      2. Total Asset Turnover = (Revenues Total Assets)
      3. Financial Lever or the Equity Multiplier = (Total Assets Common Equity)
2. Calculate the Return on invested capital (ROIC) & return on assets (ROA) of your company for the latest three years of data.
   1. ROIC = [Earnings before interest and taxes ( 1 - Tax rate)] Total invested Capital
   2. ROA = Profit Margin Total Asset Turnover
3. Calculate one additional ratio from each of the following ratio categories for your company from the last three years of financial data.
   1. Profitability
   2. Asset utilization
   3. Liquidity
   4. Debt utilization
4. Comment on any trends that you observe from the ratios calculated in part 3.
5. Comment on the following from your analysis:
   1. Compare ROIC,ROA and ROE. Comment on what you would want shareholders and other stakeholders to know about these "numbers" if you were one of the top managers (CEO or CFO) of the company.
   2. Comment on how a change in debt may affect the results of the calculations.

[HINT: The three years of data may provide some insights if the company made any changes. Alternatively, you can increase the debt amount and lower the equity by the same amount you increased the debt and see what happens; easiest if you used a spreadsheet.]