Prepare a dupont analysis of roe for two years

Reference no: EM132659714

Assignment: The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the Carnival company you selected complete the following:

1. Based on formulas in your textbook, compute the following ratios for two years. You may use Excel to compute your ratios.

• Debt ratio

• Gross profit margin

• Free cash flow

• Times interest earned

• Accounts receivable turnover

• Inventory turnover

2. Prepare a DuPont Analysis of ROE for two years, including computations of

• Return on Sales

• Asset Turnover

• Return on Assets

• Financial Leverage

• Return on Equity

3. Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:

• stronger / weaker

• quicker /slower

• more / less liquid

• more / less risk

4. Write a 3-6 page report evaluating trends in all of the above ratios. Discuss whether your company's profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems. The report should be well written with cover page, introduction, the body of the paper (with appropriate subheadings), conclusion, and reference page. References must be appropriately cited.

Reference no: EM132659714

Questions Cloud

Define cultural relativism and ethnocentrism : Define cultural relativism and ethnocentrism and explain the benefits and disadvantages of each. Using each perspective, analyze child labor.

Explain the norms of one type of social media : Explain the norms of one type of social media. How does it differ from how others view social media?

What amount of interest paid for two hundredth payment : Find What is the amount of the interest paid for the 200th payment? A home mortgage on a house with the price of $375,000 is to be financed for 30 years

What you have learned so far in cloud computing course : Provide a reflection of at least 500 words (2 pages double spaced excluding Title and Reference pages) that summarizes what you feel are the most important.

Prepare a dupont analysis of roe for two years : The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the Carnival company you selected complete.

Explain what is the company cost of preferred stoc : The stock would pay a constant annual dividend of $3.40 per share. If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock

Describe four types of specialized investments : Describe four types of specialized investments. Which forces owners can use to discipline managers? Provide with some examples of vertical, horizontal

Briefly describe the elasticity concept : Explain the relationship between the elasticity of demand and total revenue, and between marginal revenue and the own price elasticity of demand

How should people approach ethical issues : How should people approach ethical issues that IT, Information Networks and Computer Technology present? Do not select passages from any resources!

User Account

All Pages