1
answer
1
watching
1,444
views

DuPont system of analysis. Use the following ratio information for Johnso International and the industry averages for Johnson's line of business to:

a. Construct the DuPont system of analysis for both Johnson and the industry.

b. Evaluate Johnson (and the industry) over the 3- year period.

c. Indicate in which areas Johnson requires further analysis. Why?

Johnson 2013 2014 2015

Financial Leverage Multiplier 1.75 1.75 1.85

Net Profit Margin 0.059 0.058 0.049

Total Asset turnover 2.11 2.18 2.34

Industry Averages

Financial Leverage Multiplier 1.67 1.69 1.64

Net Profit Margin 0.054 0.047 0.041

Total Asset turnover 2.05 2.13 2.15

For unlimited access to Homework Help, a Homework+ subscription is required.

Jean Keeling
Jean KeelingLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Weekly leaderboard

Start filling in the gaps now
Log in