Question

In: Finance

complete a dupont analysis on BMW and Jaguar Land Rover in 2018 and 2019 using an...

complete a dupont analysis on BMW and Jaguar Land Rover in 2018 and 2019 using an open Excel document. Be sure to include net profit margin, total asset T/O, equity multiplier and ROE

*conduct the dupont analysis using the years 2017,2018,2019 please

*please use real life data from each of these years from credible internet sources like yahoo finance

Solutions

Expert Solution

​DuPont Analysis= Net Profit Margin × total assets Turnover × Equity Multiplier , where:

Net Profit Margin = Net Income​ / Revenue

total assets Turnover = Sales / Average Total Assets

Equity multiplier = Average Total Assets​​ / Average Shareholders’ Equity

BMW (Yahoo finance)
(EUR mn) 2017 2018 2019
Revenue 95,187 93,736 1,02,015
Net profit 8,620 7,117 4,915
Total assets 1,93,483 2,08,980 2,28,034
Shareholder's equity 54,112 57,559 59,324
Dupont analysis 2017 2018 2019
Net profit margin 7.59% 4.82%
Total assets turnover 0.4658 0.4669
Equity Multiplier 3.6040 3.7389
ROE 12.75% 8.41%

Jaguar Land rover is a subsidiary of Tata Motors and follows the financial year from April to March. Its reports can be found on its investor relations website.

Jaguar Land rover
(GBP mn) FY2018 FY2019 FY2020
Revenue 25,786 24,214 22,984
Net profit 1,112 -3,325 -471
Total assets 26,775 23,069 24,104
Shareholder's equity 9,984 5,979 6,548
Dupont analysis FY2018 FY2019 FY2020
Net profit margin -13.73% -2.05%
Total assets turnover 0.9716 0.9745
Equity Multiplier 3.1225 3.7657
ROE -41.66% -7.52%


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