Graded Discussion Week 1

Please note that if you edit your initial response (Original Post), you will not get credit for the Original Post. The discussions are set up as "Must post first".

ROE and DuPont analysis

Step 1:Read the articles.These articles containexamplesof 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? –ByLiz Campbell

Simply Wall St. October 5, 2017

https://finance.yahoo.com/news/did-deltic-timber-corporation-del-113618019.html

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

https://finance.yahoo.com/news/recent-roe-3-33-glen-195619168.html

3) What You Must Know About Continental Materials Corporation's (CUO) Return on Equity-By Bernadette Hatcher

Simply Wall St. October 5, 2017

https://finance.yahoo.com/news/must-know-continental-materials-corporation-180614863.html

Step 2: Answer all discussion questions.

Youmustchoose a company for your project and one of its peer competitor. When choosing your company, you can choose any company that has been publicly traded for at least five years.Make sure you can find financial statementsand detailed information about your company. Anyone can choose any company so don't worry about choosing a different one from your classmates. Nike, Disney, Microsoft, Wal-Mart, Apple, Amazon, Costco, Pfizer, Boeing, Target, GE, Starbucks, etc. would all be viable options.

For this discussion you will get financial information usingwww.morningstar.comwebsite.

Please long inwww.morningstar.com

Type the stock symbol in the search window. This is the window just below the title MORNINGSTAR on the top of the screen.

Once you have your company page, click onKey Ratios.

Click onFull 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 onAnalysis- and click onCompetitors.

Your assignment:

Please 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 answerallquestions.

1. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for thelast three yearsfor your company. You also may use debt/equity ratio in your analysis.Present ratios in your posting as a table.
   
   
   


2. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for thelast yearfor its major peer competitor. You also may use debt/equity ratio of peer competitor in your analysis.Present ratios in your posting as a table.
   
   
   


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 the company's return on equity, what should the management of the company do?


5. Reflection – the students also should include a paragraphin the initial responsein 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.