Please use a company information for the Z-core project Instructions, Please use
ID: 2739547 • Letter: P
Question
Please use a company information for the Z-core project
Instructions,
Please use a company information for the Z-core project
[1] TESO Company Financials (http://www.nasdaq.com/symbol/teso/financials?query=income-statement) use this link more information or other if you know
[2] please show the clear calculation
[3] please provide the explanation of your calculation.
Information
[1] Return on Assets (ROA)please provide the explanation of your calculation.
[2] Disaggregating ROAplease provide the explanation of your calculation.
[3] Return on Equity (ROCE)please provide the explanation of your calculation.
[4] Disaggregating ROCEplease provide the explanation of your calculation.
Explanation / Answer
Part A)
The return on assets can be calculated with the use of following formula:
Return on Assets = Net Income/Total Assets*100
Using the information available from the link for the Year 2015, we get,
Return on Assets = -133,754/421,694*100 = -31.72%
________
Part B)
The return on assets can be disaggregated with the use of Dupont formula for ROA as follows:
D.ROA = Profit Margin Ratio*Asset Turnover Ratio
Where Profit Margin = Net Income/Sales
and Asset Turnover = Sales/Total Assets
Using the information available from the link for the Year 2015, we get,
D.Return on Assets = -133,754/279,738*279,738/421,694 or -.48*.66 = -31.72% (there can be minor difference in answer on account of rounding off values)
________
Part C)
The return on equity can be calculated with the use of following formula:
Return on Equity = Net Income/Stockolder's Equity*100
Using the information available from the link for the Year 2015, we get,
Return on Equity = -133,754/374,954*100 = -35.67%
________
Part B)
The return on equity can be disaggregated with the use of Dupont formula for ROE as follows:
D.ROE = Profit Margin Ratio*Asset Turnover Ratio*Equity Multiplier
Where Profit Margin = Net Income/Sales
Asset Turnover = Sales/Total Assets
Equity Multiplier = Total Assets/Total Stockholder's Equity
Using the information available from the link for the Year 2015, we get,
D.Return on Equity = -133,754/279,738*279,738/421,694*421,694/374,954 or -.48*.66*1.12 = -35.67% (there can be minor difference in answer on account of rounding off values)