dupont analysis
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dupontanalysis.docxe. DuPont analysis
Boeing
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ALTERNATIVE EXTENDED DUPONT EQUATION |
2017 |
2016 |
2015 |
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Here NPM = NI/S = NI/EBT x EBT/OPI x OPI/GP x GP/S |
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so NPM = NI/S = TXE x ICE x ORE x PME |
8.78% |
5.18% |
5.39% |
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Therefore |
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ROE =TXE x ICE x ORE x PME x TAT x EQM |
2309.01% |
599.14% |
81.70% |
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TXE |
81.59% |
87.91% |
72.34% |
|
ICE |
97.75% |
95.44% |
96.13% |
|
ORE |
59.32% |
42.33% |
53.07% |
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PME |
18.55% |
14.57% |
14.59% |
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NPM |
8.78% |
5.18% |
5.39% |
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TAT |
101.15% |
105.08% |
101.81% |
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EQM |
260.09 |
110.16 |
14.90 |
Lockhead
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ALTERNATIVE EXTENDED DUPONT EQUATION |
2017.00 |
2016.00 |
2015.00 |
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Here NPM = NI/S = NI/EBT x EBT/OPI x OPI/GP x GP/S |
|
|
|
|
so NPM = NI/S = TXE x ICE x ORE x PME |
0.04 |
0.11 |
0.09 |
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Therefore |
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ROE =TXE x ICE x ORE x PME x TAT x EQM |
-2.93 |
3.51 |
1.16 |
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TXE |
0.34 |
1.09 |
0.84 |
|
ICE |
0.90 |
0.88 |
0.91 |
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ORE |
1.17 |
1.10 |
1.05 |
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PME |
0.11 |
0.11 |
0.11 |
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NPM |
0.04 |
0.11 |
0.09 |
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TAT |
1.10 |
0.99 |
0.82 |
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EQM |
-68.11 |
31.64 |
15.92 |
i. Conduct a DuPont analysis to evaluate the primary company’s profitability, asset management efficiency, and its ability to manage its debt. Compare the ratios that make up the extended DuPont equation and explain the trends in the primary company’s ROE.
ii. Compare the ROE of the primary and the comparison company using DuPont analysis.
f. Summary of the primary company’s overall performance (1 page)
i. Summarize your analysis based on parts a through e.
Boeing
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PROFITABILITY RATIOS |
2017 |
2016 |
2015 |
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GROSS PROFIT MARGIN = (Gross Profit/Net Sales) = % |
18.55% |
14.57% |
14.59% |
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OPERATING PROFIT MARGIN= (Oper. Income/Net Sales) = % |
11.01% |
6.17% |
7.74% |
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NET PROFIT MARGIN = (Net Income/Net Sales) = % |
8.78% |
5.18% |
5.39% |
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RETURN ONASSETS = ROA = (Net Inc./Total Assets) = % |
8.88% |
5.44% |
5.48% |
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RETRN ON EQUITY = ROE = (Net Inc./Shareholders' Equity) =% |
2309.01% |
599.14% |
81.70% |
Lockhead
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PROFITABILITY RATIOS |
2017 |
2016 |
2015 |
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GROSS PROFIT MARGIN = (Gross Profit/Net Sales) = % |
0.11 |
0.11 |
0.11 |
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OPERATING PROFIT MARGIN= (Oper. Income/Net Sales) = % |
0.13 |
0.12 |
0.12 |
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NET PROFIT MARGIN = (Net Income/Net Sales) = % |
0.04 |
0.11 |
0.09 |
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RETURN ONASSETS = ROA = (Net Inc./Total Assets) = % |
0.04 |
0.11 |
0.07 |
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RETRN ON EQUITY = ROE = (Net Inc./Shareholders' Equity) =% |
-2.93 |
3.51 |
1.16 |
Boeing
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SHORT-TERM LIQUIDITY |
2017 |
2016 |
2015 |
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CURRENT RATIO = (CA/CL) = X |
1.16 |
1.25 |
1.35 |
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ACID TEST RATIO = (CA - Inventory)/CL= X |
0.37 |
0.38 |
0.42 |
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CASH FLOW LIQIDITY RATIO = (Cash+Mkt.Sec+CFO)/CL)=X |
0.39 |
0.38 |
0.41 |
Lockhead
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SHORT-TERM LIQUIDITY |
2017.00 |
2016.00 |
2015.00 |
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CURRENT RATIO = (CA/CL) = X |
1.38 |
1.20 |
1.05 |
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ACID TEST RATIO = (CA - Inventory)/CL= X |
1.03 |
0.83 |
0.70 |
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CASH FLOW LIQIDITY RATIO = (Cash+Mkt.Sec+CFO)/CL)=X |
0.74 |
0.56 |
0.44 |
BOEING ANNUAL REPORT 2017
http://s2.q4cdn.com/661678649/files/doc_financials/annual/2017/2017-Annual-Report.pdf
LOCKHEED MARTIN ANNUAL REPORT 2017
https://www.lockheedmartin.com/content/dam/lockheed/data/corporate/documents/2017-annual-report.pdf
BOEING MOST RECENT 8K 2.21.18
https://www.sec.gov/Archives/edgar/data/12927/000119312518056076/d630486d8k.htm
LOCKHEED MOST RECENT 8K 1.29.18
https://www.sec.gov/Archives/edgar/data/936468/000093646818000004/lmt8kq42017.htm
