Question: Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three years for your company. You also may use
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Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three years for your company. You also may use debt/equity ratio in your analysis. Capital One
ROE
2019: 9.47%
2020: 4.02% 2021: 11.92%
Net profit margin
2019: 18.66%
2020: 8.50%
2021: 25.25%
Asset Turnover
2019: 0.07%
2020: 0.07%
2021: 0.07%
Financial Leverage
2019: 6.73%
2020: 7.00%
2021: 6.95%
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Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last year for its major peer competitor. You also may use debt/equity ratio of peer competitor in your analysis. America Express
ROE
2019: 29.24%
2020: 13.18% 2021: 21.60%
Net profit margin
2019: 16.04%
2020: 8.71%
2021: 14.39%
Asset Turnover
2019: 0.21%
2020: 0.18%
2021: 0.18%
Financial Leverage
2019: 8.60%
2020: 8.33%
2021: 7.90%
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Has the company's ROE changed over the last three years? What was the main factor that influenced this change?
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Compare the ratios of you company to the peer competitor. If the management of the company would like to improve their return on equity, what should the management of the company do?
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Reflection the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.
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