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:
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
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