2014 2015 2014 2015 Cash $5,000 $8,500 Suppliers $10,000 $10,000 Negotiable values $2,500 $28,000 Taxes for payable $5,000 $9,000 Accounts receivable...
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Question

After becoming aware of certain indicators, the general manager of the company "ABC SA" was very calm for his next

presentation before the Shareholders' Meeting, given that he had been informed that he managed to overcome sales and profit level net to the main competitor. To prepare the report you would submit to the Board, you have the following company information:


ejercicio 2.png


On the other hand, the main competitor's information was as follows: Net Profit = $ 60,000; Total Assets = $ 420,000; Passive ratio to equity = 1.65 and Sales = $ 550,000.

  • If you were a shareholder of the company, would you share the general manager's point of view? Support your response in the ROE comparison.
  • Applying the Dupont analysis, analyze each of the factors that explain the differences in the ROE and describe what measures you would apply to improve the results obtained.


Note: ROE = Return on Equity

ejercicio 2.png

2014
2015
2014
2015
Cash
$5,000
$8,500
Suppliers
$10,000
$10,000
Negotiable values
$2,500
$28,000
Taxes for payable
$5,000
$9,000
Accounts receivable
$30,000
Bank loans
$25,000
Stocks
$10,000
$20,000
Non-current liabilities
$22,000
$11,000
Net Fixes Assets
$30,000
Heritage
$38,000
Total assets
$100,000
Passive and heritage
Sales growth
20%
Average collection period
30 dias
Sales growth
$100,000
Current liquidity
1.5
Operating margin
20%
25%
Increase in fixed assets
$12,000
Interest coverage
2.5
3
Depreciation of the year
$2,000
Tax rate
30%
30%
Weighted Average Cost of
Capital WACC
12%
15%

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