Question
Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to...
Compute Measures for DuPont Disaggregation Analysis
Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder).
| ($ millions) | 2018 | 2017 | |
|---|---|---|---|
| Sales | $32,765 | ||
| Net income, consolidated | 5,363 | ||
| Net income attributable to 3M shareholders | 5,349 | ||
| Assets | 36,500 | $37,987 | |
| Total equity | 9,848 | 11,622 | |
| Equity attributable to 3M shareholders | 9,796 | 11,563 |
a. Compute return on equity (ROE).
Round answer to two decimal places (ex: 0.12345 = 12.35%)
b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.
- Round profit margin to two decimal places (ex: 0.12345 = 12.35%)
- Round asset turnover and financial leverage to three decimal places.
Profit margin?
Asset turnover?
Financial leverage?
c. Compute ROA
d. Compute adjusted ROA (assume a statutory tax rate of 22% and
pretax net interest expense of $207).
Round answer to two decimal places
Homework Answers
Answer #1
Leave thumbs up please , let me know if you need any further information regarding the question
Not the answer you're looking for?
Similar Questions
Compute and Interpret Measures for DuPont Disaggregation Analysis Balance sheets and income statements for 3M Company...
Compute and Interpret Measures for DuPont Disaggregation
Analysis Balance sheets and income statements for 3M Company
follow. 3M Company Consolidated Statements of Income For Years
Ended Dec. 31 ($millions) 2015 2014 2013 Net sales $31,718 $31,821
$30,871 Operating expenses Cost of sales 15,383 16,447 16,106
Selling, general & administrative expenses 6,182 6,469 6,384
Research, development & related expenses 1,763 1,770 1,715
Total operating expenses 23,328 24,686 24,205 Operating income
8,390 7,135 6,666 Interest expense and income Interest expense 149
142...
Compute and Interpret Measures for DuPont Disaggregation Analysis Balance sheets and income statements for 3M Company...
Compute and Interpret Measures for DuPont Disaggregation
Analysis
Balance sheets and income statements for 3M Company follow.
3M
Company
Consolidated
Statements of Income
For Years Ended Dec. 31 ($millions)
2015
2014
2013
Net sales
$31,385
$31,821
$30,871
Operating expenses
Cost of sales
15,383
16,447
16,106
Selling, general & administrative expenses
6,182
6,469
6,384
Research, development & related expenses
1,763
1,770
1,715
Total operating expenses
23,328
24,686
24,205
Operating income
8,057
7,135
6,666
Interest expense and income
Interest expense
149
142...
Compute and Interpret Measures for DuPont Disaggregation Analysis Balance sheets and income statements for 3M Company...
Compute and Interpret Measures for DuPont Disaggregation
Analysis
Balance sheets and income statements for 3M Company follow.
3M Company
Consolidated Statements
of Income
For Years Ended Dec. 31
($millions)
2015
2014
2013
Net sales
$30,674
$31,821
$30,871
Operating expenses
Cost of sales
15,383
16,447
16,106
Selling, general & administrative expenses
6,182
6,469
6,384
Research, development & related expenses
1,763
1,770
1,715
Total operating expenses
23,328
24,686
24,205
Operating income
7,346
7,135
6,666
Interest expense and income
Interest expense
149
142...
Selected balance sheet and income statement information for ABC follows. $ millions Jan. 31, 2016 Feb....
Selected balance sheet and income statement information for ABC
follows.
$ millions
Jan. 31, 2016
Feb. 01, 2015
Operating assets
$40,583
$38,473
Nonoperating assets
2,241
1,748
Total assets
42,824
40,221
Operating liabilities
15,018
13,527
Nonoperating liabilities
21,285
17,167
Total liabilities
36,303
30,694
Total stockholders' equity
6,521
9,527
Sales
88,999
Net operating profit before tax (NOPBT)
12,024
Nonoperting expense before tax
778
Tax expense
4,088
Net income
7,158
Round answers to two decimal places (ex: 0.12345 =
12.35%)
a. Compute ROE...
Selected balance sheet and income statement information for TGHI follows. $ millions Jan. 31, 2016 Feb....
Selected balance sheet and income statement information for TGHI
follows.
$ millions
Jan. 31, 2016
Feb. 01, 2015
Operating assets
$40,583
$38,473
Nonoperating assets
2,241
1,748
Total assets
42,824
40,221
Operating liabilities
15,018
13,527
Nonoperating liabilities
21,285
17,167
Total liabilities
36,303
30,694
Total stockholders' equity
6,521
9,527
Sales
88,999
Net operating profit before tax (NOPBT)
12,024
Nonoperting expense before tax
778
Tax expense
4,088
Net income
7,158
Round answers to two decimal places (ex: 0.12345 =
12.35%)
a. Compute ROE...
Compute and Analyze Measures for DuPont Disaggregation Analysis Balance sheets and income statements for Costco Wholesale...
Compute and Analyze Measures for DuPont Disaggregation
Analysis
Balance sheets and income statements for Costco Wholesale
Corporation follow.
Consolidated Statements of Earnings
For Fiscal Years Ended ($ millions)
September 1, 2013
September 2, 2012
August 28, 2011
Revenue
Net Sales
$102,870
$97,062
$87,048
Membership fees
2,286
2,075
1,867
Total revenue
105,156
99,137
88,915
Operating expenses
Merchandise costs
91,948
86,823
77,739
Selling, general and administrative
10,104
9,518
8,691
Preopening expenses
51
37
46
Operating Income
3,053
2,759
2,439
Other income (expense)...
Compute and Interpret RNOA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income...
Compute and Interpret RNOA, Profit Margin, and Asset Turnover of
Competitors Selected balance sheet and income statement information
for drug store retailers CVS Health Corp. and Walgreens Boots
Alliance follows. 2015 Net 2014 Net 2015 Operating Operating
Company ($ millions) Ticker 2015 Sales NOPAT Assets Assets CVS
Health CVS $153,290 $5,758 $62,159 $48,338 Walgreens Boots Alliance
WBA 103,444 3,642 42,683 22,461 a. Compute the 2015 return on net
operating assets (RNOA) for each company. Round answers to two
decimal places...
P3-36: DuPont system of analysis Use the following 2016 financial information for ATT and Verizon to...
P3-36: DuPont system of analysis Use the
following 2016 financial information for ATT and Verizon to conduct
a DuPont system of analysis for each company.
ATT
Verizon
Sales
$163,786
$125,980
Earnings available for common stockholders
13,333
13,608
Total assets
403,821
244,180
Stockholders’ equity
124,110
24,032
Which company has the higher net profit margin? Higher asset
turnover?
Which company has the higher ROA? The higher ROE?
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot...
Compute ROE and RNOA with Disaggregation
Selected balance sheet and income statement information for Home
Depot follows.
$
millions
Jan. 31,
2016
Feb. 01, 2015
Operating
assets
$40,333
$38,223
Nonoperating
assets
2,216
1,723
Total
assets
42,549
39,946
Operating
liabilities
14,918
13,427
Nonoperating
liabilities
21,315
17,197
Total
liabilities
36,233
30,624
Total stockholders'
equity
6,316
9,322
Sales
88,519
(NOPBT) 11,774
Nonoperting expense before
tax 753
Tax
expense
4,012
Net income 7,009
Round all answers to two decimal places (ex: 0.12345 =
12.35%)...
Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot...
Compute ROE and RNOA with Disaggregation
Selected balance sheet and income statement information for Home
Depot follows.
$ millions
Jan. 31, 2016
Feb. 01, 2015
Operating assets
$40,783
$38,673
Nonoperating assets
2,291
1,798
Total assets
43,074
40,471
Operating liabilities
15,068
13,577
Nonoperating liabilities
21,270
17,152
Total liabilities
36,338
30,729
Total stockholders' equity
6,736
9,742
Sales
89,464
Net operating profit before tax (NOPBT)
12,224
Nonoperting expense before tax
828
Tax expense
4,523
Net income
6,873
Round answers to two decimal places...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 19 minutes ago
asked 19 minutes ago
asked 51 minutes ago
asked 55 minutes ago
asked 59 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago