Question
In: Finance
Use the following ratio information for Johnson International and the industry averages for Johnson’s line of...
Use the following ratio information for Johnson International and the industry averages for Johnson’s line of business to construct the DuPont system of analysis for both Johnson and the industry.
|
Johnson |
2010 |
2011 |
2012 |
Industry Averages |
2010 |
2011 |
2012 |
|
Financial leverage multiplier |
1.75 |
1.75 |
1.85 |
Financial leverage multiplier |
1.67 |
1.69 |
1.85 |
|
Net profit margin |
0.059 |
0.058 |
0.049 |
Net profit margin |
0.054 |
0.047 |
0.041 |
|
Total asset turnover |
2.11 |
2.18 |
2.34 |
Total asset turnover |
2.05 |
2.13 |
2.15 |
| A. |
ROA Johnson (2012, 2011, 2010): 21.21%, 22.13%, 21.79% ROA Industry (2012, 2011, 2010): 16.31%, 16.92%, 18.49% ROE Johnson (2012, 2011, 2010): 11.47%,12.64%, 12.45% ROE Industry (2012, 2011, 2010): 8.82%, 10.01%, 11.07% |
|
| B. |
ROA Johnson (2012, 2011, 2010): 16.31%, 16.92%, 18.49% ROA Industry (2012, 2011, 2010): 21.21%, 22.13%, 21.79% ROE Johnson (2012, 2011, 2010): 8.82%, 10.01%, 11.07% ROE Industry (2012, 2011, 2010): 11.47%,12.64%, 12.45% |
|
| C. |
ROA Johnson (2012, 2011, 2010): 11.47%,12.64%, 12.45% ROA Industry (2012, 2011, 2010): 8.82%, 10.01%, 11.07% ROE Johnson (2012, 2011, 2010): 21.21%, 22.13%, 21.79% ROE Industry (2012, 2011, 2010): 16.31%, 16.92%, 18.49% |
|
| D. |
ROA Johnson (2012, 2011, 2010): 8.82%, 10.01%, 11.07% ROA Industry (2012, 2011, 2010): 11.47%,12.64%, 12.45% ROE Johnson (2012, 2011, 2010): 16.31%, 16.92%, 18.49% ROE Industry (2012, 2011, 2010): 21.21%, 22.13%, 21.79% |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to
DuPont system of analysis
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 industry.
b. Evaluate Johnson (and the industry) over the 3 -year period.
c. Indicate in which areas Johnson requires further analysis. Why?
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Other current liabilities
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Total current liabilities
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Accounts payable
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Receivables
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Accounts payable
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Inventories
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