Please find the Du Pont result for: Sales Total Assets Total Liabilities Stockho
ID: 2795653 • Letter: P
Question
Please find the Du Pont result for:
Sales
Total Assets
Total Liabilities
Stockholders Equity
Net Profit Margin
Total Asset Turnover
Total Liab. And Stockholder's equity
Return On Total Assets (ROA)
Financial Leverage Multiplier (FLM)
Return On Total Equity (ROE)
Total Assets
Total Liabilities
Stockholders Equity
Net Profit Margin
Total Asset Turnover
Total Liab. And Stockholder's equity
Return On Total Assets (ROA)
Financial Leverage Multiplier (FLM)
Return On Total Equity (ROE)
Steven's Industries Income Statement for year ending Dec. 31, 2010 %of Sales Sales revenue Less: Cost of goods sold Gross Profits Less: Operating Expenses $160,000 100% $106,000 $54,000 66% 34% Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expenses $16,000 $10,000 $1,000 $10,000 37000 $17,000 10% 8% 1% 6% 23% 11% Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $6,100 4% $10,900 $4,360 7% 3% $6,540Explanation / Answer
ACT 2010
ACT 2009
Industry average
current ratio
current assets/current liabilities
72000/69000
1.043478
1.84
1.8
it is lower than industry average
quick assets
quick assets/current liabilities
(72000-45500)/69000
0.384058
0.78
0.7
it is also much lower than the industry average as well as from last year data
inventory turnover
sales/inventory
160000/45500
3.516484
2.59
2.5
it have increased over the year and better than industry
average collection period
(sales/accounts receivable)*365
(160000/25000)*365
41.40625
36.5
37.5
it has increased from the industry and last year average
Debt ratio
total of liabilities/total of assets
(69000+22950)/150000
0.613
0.67
0.65
it is consistent with the industry and last year figures
Times interest earned
ebit/interest
17000/6100
2.786885
4
3.8
it has decreased from last year and industry also
gross profit margin
profit/sales
54000/160000
0.3375
0.4
0.38
rate of gross profit has decreased over the period of time
net profit ratio
net profit/sales
6540/160000
0.040875
0.036
0.035
this has increased over the period to time and also from industry
return on total assets
net income/total assets
6540/150000
0.0436
0.04
0.04
this has increased over the period to time and also from industry
return on equity
net income/total equity
6450/58050
0.111111
0.08
0.095
this has increased over the period to time and also from industry
market book value ratio
75000/58050
1.29199
1.2
1.1
it has increased from the industry and last year average
book value
3000*19.35
58050
market value
3000*25
75000
Financial leverage multiplier
total assets/total equity
150000/58050
2.583979
2
2.375
it has increased from the industry and last year average
Total Assets
150000
Total Liabilities
91950
Stockholders Equity
58050
Net Profit Margin
3.60%
Total Asset Turnover
1.066666667
Total Liab. And Stockholder's equity
150000
Return On Total Assets (ROA)
4.36%
Financial Leverage Multiplier (FLM)
2.583979328
Return On Total Equity (ROE)
11.11%
ROE = net profit margin*total asset turnover*financial leverage multiplier
9.92%
ACT 2010
ACT 2009
Industry average
current ratio
current assets/current liabilities
72000/69000
1.043478
1.84
1.8
it is lower than industry average
quick assets
quick assets/current liabilities
(72000-45500)/69000
0.384058
0.78
0.7
it is also much lower than the industry average as well as from last year data
inventory turnover
sales/inventory
160000/45500
3.516484
2.59
2.5
it have increased over the year and better than industry
average collection period
(sales/accounts receivable)*365
(160000/25000)*365
41.40625
36.5
37.5
it has increased from the industry and last year average
Debt ratio
total of liabilities/total of assets
(69000+22950)/150000
0.613
0.67
0.65
it is consistent with the industry and last year figures
Times interest earned
ebit/interest
17000/6100
2.786885
4
3.8
it has decreased from last year and industry also
gross profit margin
profit/sales
54000/160000
0.3375
0.4
0.38
rate of gross profit has decreased over the period of time
net profit ratio
net profit/sales
6540/160000
0.040875
0.036
0.035
this has increased over the period to time and also from industry
return on total assets
net income/total assets
6540/150000
0.0436
0.04
0.04
this has increased over the period to time and also from industry
return on equity
net income/total equity
6450/58050
0.111111
0.08
0.095
this has increased over the period to time and also from industry
market book value ratio
75000/58050
1.29199
1.2
1.1
it has increased from the industry and last year average
book value
3000*19.35
58050
market value
3000*25
75000
Financial leverage multiplier
total assets/total equity
150000/58050
2.583979
2
2.375
it has increased from the industry and last year average
Total Assets
150000
Total Liabilities
91950
Stockholders Equity
58050
Net Profit Margin
3.60%
Total Asset Turnover
1.066666667
Total Liab. And Stockholder's equity
150000
Return On Total Assets (ROA)
4.36%
Financial Leverage Multiplier (FLM)
2.583979328
Return On Total Equity (ROE)
11.11%
ROE = net profit margin*total asset turnover*financial leverage multiplier
9.92%