Compute the dupont return on asset

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Reference no: EM133094285

Question - Selected 10-K financial information for the ABC Company:

Selected Accounts

FY 2020

FY 2019

FY 2018

FY 2017

Net Sales/Revenue

$970,500

$980,500

$900,000

$1,150,000

Operating Expenses

$170,200

$167,665

$155,700

$187,600

Net Profit

$171,115

$163,497

$143,990

$196,400

Total Assets

$1,969,700

$1,421,800

$2,516,200

$2,552,900

Required -

(a) Compute the DuPont Return on Asset (ROA) ratios for FY 2020, FY 2019, and FY 2018. All calculations must be 2-decimal places.

(b) Without competitors and industry index, or additional research, please provide 2 possible reasons for the ratio trends between FY 2019 to FY 2020. One trend should be focus on the Net Profit Margin change and the other on the Total Asset Turnover change.

Reference no: EM133094285

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