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Unformatted text preview: 3. Decompose Inditexs return on equity in 2007 and 2008 using the alternative approach. What explains the difference between Inditexs return on assets and its operating return on assets? 4. Analyze the underlying drivers of the change in Inditexs return on equity. What explains the decrease in return on equity? (e.g. address issues of store productivity, cost control, pricing and leverage.) Exercise 2 Toledo Toy, a manufacturer of infants blocks, presented the following data in its last annual report. This trend analysis begins with the year of formation, 2007. Sales Cost of Sales Net Income Required: a. Using 2007 as the base year, perform a horizontal, common-size analysis. b. Comment on the results of the horizontal analysis....
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This note was uploaded on 05/17/2011 for the course ECON 101 taught by Professor Womer during the Spring '08 term at NYU.
- Spring '08