6.2.1 Solutions_Lecture_12_WWA_2009

6.2.1 Solutions_Lecture_12_WWA_2009 - 1 Very bad in 2008,...

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Unformatted text preview: 1 Very bad in 2008, but projected to exceed industry average in 2009. Looking good. Profit margin vs. industry average? Profit margin vs. industry average? 2009 2008 2007 Ind. P.M. 3.6%-8.9% 2.6% 3.5% 253.6 3.6% 7,036 NPAT M Sales = = = 2 BEP vs. Industry Average? 510.6 3,497 0.146 14.6% EBIT BEP TA or = = = 3 BEP removes effect of taxes and financial BEP removes effect of taxes and financial leverage. Useful for comparison. leverage. Useful for comparison. Projected to be below average. Projected to be below average. Room for improvement. Room for improvement. 2009 2008 2007 Ind. BEP 14.6%-24.1% 14.2% 19.1% 4 Calculate Return on Assets 253.6 3,497 7.3% NPAT ROA TA = = = 5 2009 2008 2007 Ind. ROA 7.3%-18.1% 6.0% 9.1% ROE 16.3%-391.4% 13.3% 18.2% Both below average but improving. ROE Solution: 235.6 16.3% 1,552 NPAT ROE E = = = 6 ( 29 2007 2.6% 2.3 2.2 13.3% 2008 8.9% 2.0 21.6 391.4% 2009 3.6% 2.0 2.3 16.3% 3.5% 2.6 2.0 18.2% Profit Equity...
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6.2.1 Solutions_Lecture_12_WWA_2009 - 1 Very bad in 2008,...

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