Assignment: ROE and DuPont analysis
Read the articles. These articles contain example of using DuPont formula to analyze ROE. You will be using these example to answer the questions listed at the bottom of the topic description.
1. How Did Deltic Timber Corporation's (DEL) 3.41% ROE Fare Against The Industry? - By Liz Campbell, Simply Wall St. October 5, 2017
2) With A Recent ROE Of 3.33%, Can Glen Burnie Bancorp (GLBZ) Catch Up To Its Industry?- By Brent Freeman, Simply Wall St. October 5, 2017.
3) What You Must Know About Continental Materials Corporation's (CUO) Return on Equity- By Bernadette Hatcher, Simply Wall St. October 5, 2017.
You can use the company assigned for you for the project and one of its peer competitor.
Type the stock symbol in the search window. This is the window just below the titleMORNINGSTAR on the top of the screen.
Once you have your company page, click on Key Ratios.
Click on Full Key Ratios Data .
ROE and it's components for DuPont formula can be found under Profitability. Debt/equity ratio can be found under Key Ratios - Financial Health.
To get the list of competitors now you need to click on Analysis - and click on Competitors.
Your assignment:
Also note that your answers should be written in your own words. Don't use quotes from the articles.
You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.
In your initial response to the topic you have to answer all questions.
1. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three years for your company. You also may use debt/equity ratio in your analysis.
2. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last year for its major peer competitor. You also may use debt/equity ratio of peer competitor in your analysis.
3. Has the company's ROE changed over the last three years? What was the main factor that influenced this change?
4. Compare the ratios of you company to the peer competitor. If the management of the company would like to improve their return on equity, what should the management of the company do?
5. Reflection - the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.