A firm’s
NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios.
You may use the tables below
BALANCE SHEET |
2021 |
Cash and cash equivalents |
280 |
Receivables |
2588 |
Inventory |
2516 |
Other |
189 |
TOTAL CA |
5573 |
Fixed assets |
5024 |
TOTAL ASSETS |
10597 |
Accounts payable |
4713 |
Short term debt |
78 |
TOTAL CL |
4790 |
LT debt |
921 |
Shareh. Equity |
4886 |
TOTAL LIAB. AND SHARH. EQUITY |
10597 |
INCOME STATEMENT |
2021 |
Sales |
19418 |
COGS |
13136 |
|
354 |
SG&A |
4952 |
EBIT |
976 |
Interest Expenses |
52 |
Tax |
268 |
Net income |
656 |
- Decompose the
return on equity for the FY 2021 in its five components.
4.4 ROE decomposition |
2021 |
Tax Effect |
|
Financial Cost Effect |
|
Operating Margin |
|
Invested Capital Turnver |
|
Financial structure Effect |
|
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