Use the following ratio information for Jordan International and the industry averages for Jordan's line of business
Question:
Use the following ratio information for Jordan International and the industry averages for Jordan's line of business to:
a. Construct the DuPont system of analysis for both Jordan and the industry.
b. Evaluate Jordan (and the industry) over the 3-year period.
c. Indicate in which areas Jordan requires further analysis. Why?
Jordan 2011 Financial leverage multiplier Net profit margin Total asset turnover 2010 1.75 0.059 2.11 1.75 0.058 2.18 2012 1.85 0.049 2.34 Industry Averages Financial leverage multiplier Net profit margin Total asset turnover 1.67 0.054 2.05 1.69 0.047 2.13 1.64 0.041 2.15
Step by Step Answer:
a Margin Turnover ROA FL Multiple ROE 2012 Jordan 49 234 1147 185 2121 Industry 41 215 882 164 1446 ...View the full answer
Principles of Managerial Finance
ISBN: 978-1408271582
Arab World Edition
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
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.
Students also viewed these Finance questions
-
Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to: a. Construct the DuPont system of analysis for both Johnson and the...
-
Walsham Millss balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Walsham Millss balance sheet. a. Current ratio is 0.86. b. Acid-test ratio is 0.40....
-
A summary of Pasmore Ltd.'s balance sheet appears as follows: Use the following ratio data to complete Pasmore Ltd.'s balance sheet: a. Current ratio is 0.70. b. Acid-test ratio is 0.30. Balance...
-
In the game of roulette, a gambler who wins the bet receives $36 for every dollar she or he bet. A gambler who does not win receives nothing. If the gambler bets $1, what is the expected value of the...
-
Sosa Co.'s stockholders' equity at January 1, 2010 is as follows: Common stock, $10 par value; authorized 300,000 shares; Outstanding 225,000 shares $2,250,000 Paid-in capital in excess of par...
-
Write a program to simulate the operation of a sequential taillight system. The light system consists of three separate lights on each side of the car. Each set of lights will be activated...
-
A university pumps its water from wells located on campus. The falling water table has caused pumping costs to increase, the quantity of water available to decrease, and the quality of water to...
-
Using present value techniques to evaluate alternative investment opportunities Fast Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of...
-
Briefly list 3 to 5 Generic properties of each database and give examples if possible 1. Oracle databases 2. MSSQL Server 3.MySQL Server
-
IBS is a global provider of point-of-sale systems and related services that enable businesses to accept electronic payments. As a new hire in the companys international headquarters accounting...
-
Given the following financial statements below, historical ratios, and industry averages, calculate West Island Company's financial ratios for the most recent year. (Assume a 365-day year.) Analyze...
-
Determine the operating cash flow (OCF) for Kitkat, Inc., based on the following data. (All values are in thousands of dollars.) During the year the firm had sales of US$2,500, cost of goods sold...
-
Fill in the blank(s) to correctly complete each sentence. The graph of (x) = -x is a reflection of the graph of y = x across the -axis.
-
One of the most notable cases of financial statement fraud involving a public company in the last five years is the case of Wirecard AG, a German payment processor and financial services provider....
-
Let 42840000 16 and 3c820000 16 represent two floating point numbers in IEEE single-precision FP format. a) Determine the decimal values of the two numbers. b) Add the two numbers and show the result...
-
A supplier of kerosene has a weekly demand Y possessing a probability density function given by y, 0 y 1, f(y) 1, 1y1.5, 0, elsewhere, with measurements in hundreds of gallons. (This problem was...
-
Given the figure below, find the values of x and z. (15x-8) 82 x N =
-
Using Chebyshev's theorem, solve these problems for a distribution with a mean of 52 and a standard deviation of 16. Round k to at least 2 decimal places and final answers to at least one decimal...
-
Indicate whether each statement is required in IFRS or in ASPE, or in both. IFRS ASPE Both 1. Statement of Financial Position 2. Statement of Comprehensive Income 3. Income Statement 4. Statement of...
-
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
-
Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects follow. a. Which...
-
Mike is searching for a stock to include in his current stock portfolio. He is interested in Hi-Tech Inc.; he has been impressed with the companys computer products and believes Hi-Tech is an...
-
Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point. a. For...
-
Assume that the real rate of interest is 1 . 7 3 percent and the anticipated percentage change in price levels over the life of the loan contract is 9 . 2 3 percent. What is the nominal interest rate...
-
Samsung has been producing the new Galaxy X250 smart phone throughout 2022 but doesn't plan to sell it until March 2023. How are these smartphones, which are sitting in a warehouse somewhere in...
-
Silver Water Motorworks produces small electric motors in lots of 200 with an average yield of 92%. Fifty per cent (50%) of the sub-standard output from the first run through, can be reworked. Direct...
Study smarter with the SolutionInn App