Reference no: EM131365126
Using the data for Paychex, Inc. (Nasdaq: PAYX), presented below:
a. Calculate the ratio of each years' data to the previous year for each of the above items for Paychex, Inc. For example, for the year 2010, the ratio for sales is $2,000.82/$2,082.76 = 0.9607.
b. From your calculations in part a, calculate each year's rate of growth. Using the example in part a, the ratio is 0.9607, so the percentage growth in sales for 2010 is 0.9607 - 1 or -3.93%.
c. Calculate the average growth rate (using the AVERAGE function) of each of the above items using the results you calculated in part b. These averages are arithmetic averages.
d. Use the GEOMEAN function to estimate the compound annual average growth rate (CAGR) for each of the above items using the results that you calculated in part a. Be sure to subtract 1 from the result of the GEOMEAN function to arrive at a percent change. These averages are geometric averages.
e. Compare the results from part c (arithmetic averages using the AVERAGE function) to those for part d (geometric averages using the GEOMEAN function) for each item. Is it true that the arithmetic average growth rate is always greater than or equal to the geometric average (CAGR)?
f. Contrast the results for the geometric averages to those for the arithmetic average for the variables listed below. What do you observe about the differences in the two growth estimates for Sales and Accounts Payable? What do you observe about the differences in the two estimates for Total Assets and Retained Earnings? Hint: Look at the results from part b (the individual yearly growth rates) for each variable to draw some conclusions about the variation between the arithmetic and geometric averages.
1. Sales
2. EBIT
3. Total Assets
4. Accounts Payable
5. Retained Earnings
|
Display the annual income statement
: Display the annual income statement and copy the sales and net income data. Now enter the data into your template.
|
|
What are stages of drug addiction for alcohol and cocaine
: What are the stages of drug addiction for alcohol, heroin, and cocaine? How do the stages of psychological development affect drug use and abuse?
|
|
Explain how hr functions support the selected organization
: Explain how key HR functions support the selected organization's strategy. Include recruitment, retention, total rewards, performance management, and employment law in your analysis
|
|
Compass to point toward the nearest pole
: Your friend says that, when a compass is taken across the equator, it turns around and points in the opposite direction. Your other friend says that this is not true, that people in the Southern Hemisphere use the south magnetic pole of the compas..
|
|
Calculate each year''s rate of growth
: Calculate the ratio of each years' data to the previous year for each of the above items for Paychex, Inc. For example, for the year 2010, the ratio for sales is $2,000.82/$2,082.76 = 0.9607.
|
|
Describe and examine the social causes of disease
: HE320: What contribution does Parsons' concept of a sick role make to our understanding of sickness in society? What are the weaknesses of that concept?Ethnicity affects individuals' health in many different ways. Compare the effect of ethnicity o..
|
|
Scuff electrons from hair onto the comb
: When combing your hair, you scuff electrons from your hair onto the comb. Is your hair then positively or negatively charged? How about the comb?
|
|
Do the same dynamic factors at the federal level occur
: HLS420- You know that the environment in which current homeland security strategic planning is occurring is dynamic. Do the same dynamic factors at the federal level occur at the state levels of government? Explain.
|
|
Examine the key individual and organizational factors
: Examine the key individual and organizational factors that influence an ethical decision making framework in resolving ethical dilemmas. Outline a guide that HR can use to implement principles and core values in ethical decision making in an organ..
|