corporate finance

Nintendo

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	1. Please gather data from Nintendo's financial statements and fill in the blanks below. Derive ROE using a five-way DuPont.
								five-way Dupont Analysis
	In Million $	2015	2016	2017				2015	2016	2017
d	Net Sales	5002.99	4187.01	4304.03			Interest Burden	1	1	1
	EBIT	225.41	272.92	258.39			Tax Burden	41.9%	40.4%	10.6%
	Total Assets	12311.79	10764.29	12927.01			Operating Income Margin	4.51%	6.52%	6.00%
	Total Liabilities	1687.02	1128.81	1918.44			Assets Turnover	40.6%	38.9%	33.3%
	Interest Expense	-	-	-			Ave. Assets	12687.95	11538.04	11845.65
	Effective Tax Rate	41.9%	40.4%	10.6%			Ave. Equity	10904.57	10130.12	10322.01
							Financial Leverage	1.16	1.14	1.15
							ROE	0.9%	1.2%	0.2%
	Return on Equity	3.6%	1.4%	8.2%
	What is the trend of Nintendo's ROE from 2015 to 2017?
	What is driving Nintendo's ROE? Is this favorable or not? Explain.
	a) Given the empty cells below on Nintendo, gather data from their financial statements and compute for the the debt ratios below:
	In Million $	2015	2016	2017
	Cash and Cash Equivalents	8329.16	7547.52	8325.42
	Short-term Debt	1312.51	817.03	1620.16
	Long-term Debt	374.51	311.77	298.28
	Common Equity	10624.76	9635.48	11008.55
	Total Assets	12311.79	10764.29	12927.01
	Debt-to-Assets (%)	14%	10%	15%
	Debt-to-Equity (x)	16%	12%	17%
	Long-term Debt-to-Equity (x)	4%	3%	3%
	Net Debt-to-Equity (x)	-0.63	-0.67	-0.58
	b) What do the debt ratios say about Nintendo's debt position? Do all four ratios give the same message?
	c) What is the advantage/disadvantage of net debt-to-equity over the other debt sustainability ratios?

2015 2016 2017 3.5799999999999998E-2 1.4200000000000001E-2 8.2000000000000003E-2