All all all all firms firms firms firms are are are

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Unformatted text preview: All All All All firms firms firms firms are are are are growing growing growing growing CHOW maintains a modestly growth, but Emperor is growing faster. All All All All firms firms firms firms are are are are very very very very profitable profitable profitable profitable CHOW: Profitability Profitability Profitability Profitability Return on Equity 0.119 0.160 0.185 0.148 Return on Equity (b4 non-recurring) 0.101 0.137 0.166 0.126 Return on Net Operating Assets 0.108 0.158 0.180 0.138 EM: EM: EM: EM: Profitability Profitability Profitability Profitability Return on Equity 0.139 0.074 0.205 0.215 Return on Equity (b4 non-recurring) 0.136 0.134 0.204 0.214 Return on Net Operating Assets 0.135 0.072 0.192 0.207 Emperor has th e highe highe highe higher ROE ROE ROE ROE and and and and RNOA RNOA RNOA RNOA When When When When we we we we examine examine examine examine the the the the drivers drivers drivers drivers of of of of RNOA RNOA RNOA RNOA EM: EM: EM: EM: Advanced Advanced Advanced Advanced Dupont Dupont Dupont Dupont Model Model Model Model 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 Net Operating Margin 0.122 0.075 0.034 0.107 0.132 x Net Operating Asset Turnover 1.796 2.095 1.794 1.574 = Return on Net Operating Assets 0.135 0.072 0.192 0.207 Turnover Turnover Turnover Turnover Analysis Analysis Analysis Analysis Avge Days to Collect Receivables 22.970 21.283 14.706 11.058 Avge Inventory Holding Period 230.143 207.169 242.777 288.331 Avge Days to Pay Payables 16.010 22.234 20.832 21.881 PP&E Turnover 49.673 51.209 64.412 65.746 Gross Margin 0.279 0.258 0.256 0.288 0.329 CHOW: CHOW: CHOW: CHOW: Advanced Advanced Advanced Advanced Dupont Dupont Dupont Dupont Model Model Model Model 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 Net Operating Margin 0.064 0.067 0.067 0.056 x Net Operating Asset Turnover 1.693 2.357 2.676 2.470 = Return on Net Operating Assets 0.108 0.158 0.180 0.138 Net Borrowing Cost (NBC) 0.023 0.104 0.091 0.043 Spread (RNOA - NBC) 0.085 0.053 0.088 0.095 Financial Leverage (LEV) 0.131 0.034 0.066 0.107 ROE = RNOA + LEV*Spread 0.119 0.160 0.185 0.148 Turnover Turnover Turnover Turnover Analysis Analysis Analysis Analysis Avge Days to Collect Receivables 38.152 11.377 10.660 13.059 Avge Inventory Holding Period 123....
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