I.Trend Analysis : Table 1 [1]: 2020 2019 2018 2017 2016 Sale Growth -2.71% 0.77% 3.83% 0.04%
Question:
I.Trend Analysis:
Table 1[1]:
2020
2019
2018
2017
2016
Sale Growth
-2.71%
0.77%
3.83%
0.04%
-4.29%
COGS Growth
-4.88%
-1.65%
5.98%
1.72%
Gross Income Growth
-0.15%
3.79%
1.27%
-1.88%
Interest Expense Growth
-9.64%
-2.13%
2.11%
8.16%
Net Income Growth
-7.60%
24.07%
-48.41%
129.31%
-26.58%
Cash & Short-Term Investments Growth
512.48%
0.61%
82.40%
-27.81%
Assets - Total - Growth
8.49%
10.16%
2.99%
5.31%
0.002%
ROE
Net Profit Margin
Asset Turnover
Financial Leverage
Debt/Equity Ratio
2020
27.55%
13.88%
.42
4.67
2.08
2019
33.64%
14.61%
.47
4.75
1.94
2018
32.27%
11.87%
.50
4.98
1.99
Dupont analysis= 13.88% * 0.42 * 4.67=0.2722
Competitor: AT&T Inc:
Table 4[1]:
ROE
Net Profit Margin
Asset Turnover
Financial Leverage
Debt/Equity Ratio
2020
-3.10%
-3.13%
.32
3.25
1.09
Dupont analysis= -3.13% * 0.32 * 3.25=0.03355
a.Has the company's ROE changed over the last three years? What was the main factor that influenced this change?
b.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?
Expert Answer:
a Yes the companys ROE has changed over the last three years It decreased from 3227 in 2018 to 2755 ... View the full answer
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
