This is a Finance Assignment.

1
    Ratio    Formula    2001    2002    2003
    Profit Margin    Net Income / Net Sales    193200/4269871    243100/4483360    200318/5021643
    Profit Margin        4.52%    5.42%    3.99%
    Return on Assets    Net Income / Total Assets    193200/3170200    243100/3360650    200318/3510110
            6.09%    7.23%    5.71%
    Return on Equity    Net Income / Total Equity    193200/1204600    243100/1310655    200318/1333800
            16.04%    18.55%    15.02%
    Using DuPont Analysis
    Return on Equity    Return on Asset /(1-Debt/Total Asset)
    Asset Turnover Ratio    Net Sales/Total Assets    4269871/3170200    4483360/3360650    5021643/3510110
            1.35    1.33    1.43
    Debt/Total Asset    Debt/Total Assets    1965600/3170200    2049995/3360650    2176310/3510110
            0.62    0.61    0.62
    Return on Asset    Profit Margin * Asset Turnover Ratio    4.45% * 1.35    5.42% * 1.33     3.99% * 1.43
            6.01%    7.21%    5.71%
    Return on Equity    Return on Asset /(1-Debt/Total Asset)    6.01%/(1-0.62)    7.21%/(1-0.61)    5.71%/(1-0.62)
            15.82%    18.49%    15.03%
2
    Over the Period of Three Years, The profitability trend of the company is that the profit margin increased in 2002 to 5.42% from 4.52% and then dipped next year to 3.99%, which is now lower than the industry average Profit Margin ration 4.51%. Similarly with The Return on Assets, increased in 2002 and again dipped in 2003 to 5.71%. However, ROA remained higher than the industry average of 5.1% for all of the Year. Again, Similar trend was observed in ROE, increased in 2002 and again dipped to 15.03% in 2003. But, it is higher than the industry average of 9.8% for all of the years
3
    Ratio    Formula    2003
    Profit Margin    Net Income / Net Sales    310818/5021643
            6.19%
    Return on Assets    Net Income / Total Assets    310818/3510110
            8.85%
    Return on Equity    Net Income / Total Equity    310818/1333800
            23.30%
    Using DuPont Analysis
    Return on Equity    Return on Asset /(1-Debt/Total Asset)
    Asset...