Evaluate Return on Equity for the company for the last three years using the DuPont analysis.
You can find these ratios in the Internet or calculate them. If you use published ratios you must indicate that and cite their source.
a. 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. Present the ratios as the table(s) in your project.
b. 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. Present the ratios as the table(s) in your project.
c. Has the companys ROE changed over the last three years? What was the main factor that influenced this change?
d. 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?
Write about 1 page of analysis to answer the questions (c) and (d).
