In: Finance
1. Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2016 (in millions). | ||||||||
Income Statement | Balance Sheet | |||||||
DuPont | Dow | PPG | DuPont | Dow | PPG | |||
Revenues | 24594 | 48158 | 14751 | Cash & Market Securities | 5967 | 6607 | 1863 | |
COGS | 14440 | 37324 | 8063 | Receivables, net | 4789 | 8831 | 2692 | |
Gross Profit | 10154 | 10834 | 6688 | Inventories | 5673 | 7363 | 1546 | |
SG&A Expenses | 4319 | 3304 | 4630 | Total Current Assets | 17117 | 23659 | 6452 | |
Net Income | 2513 | 4318 | 877 | Fixed Assets, net | 9231 | 23486 | 2759 | |
Total Assets | 39964 | 79511 | 15769 | |||||
Total Current Liabilities | 8897 | 12604 | 4240 | |||||
Total Liabilities | 29966 | 53524 | 10943 | |||||
Total Equity | 9998 | 25987 | 4826 | |||||
Preferred Stock | 237 | 0 | 0 | |||||
Working Capital | 8220 | 11055 | 2212 | |||||
Common Equity | 9761 | 25987 | 4826 | |||||
Complete the following tables using common-size analysis: |
6. Given the information above, calculate the DuPont Model for the three chemical companies. Rate DuPont performance for these companies from 1 to 10. | ||||||||
DuPont | Dow | PPG | ||||||
Profitability | ||||||||
Activity | ||||||||
Return on Assets | DuPont | Dow | PPG | |||||
Solvency | Common Equity 2016 | 9761 | 25987 | 4826 | ||||
Return on Equity | Common Equity 2015 | 9756 | 21374 | 4983 | ||||
Ratings | ||||||||
Answer 1: To complete the following tables using common-size analysis: