You are asked to conduct a DuPont analysis over JJ Co. The company has a profit margin of 95% a….
You are asked to conduct a DuPont analysis over JJ Co. The company has a profit margin of 95% a total assets turnover of 133, and an equity multiplier of 21.
(1) Use DuPont formula to calculate the firm’s ROE? (You MUST show your work to earn credit!! The final answer of each question should keep two decimal places)
(2) Suppose the industry that JJ Co belongs to has a profit margin of 8.2%, total asset turnover of 2.11 and an equity multiplier of 150. Compare to the industry average indicate which ratio(s) JJ Co. is outperforming the industry and which areas it is under performing
(3) Provide 2 recommendations to JJ Co to improve its performance. Your answer should be based on the DuPont analysis in previous two parts
You are asked to conduct a DuPont analysis over JJ Co. The company has a profit margin of 95% a…
