Score: 0 of 1 pt 4 of 4 (3 complete) HW Score: P3-26 (book/static) E Que DuPont

Question

Score: 0 of 1 pt 4 of 4 (3 complete) HW Score: P3-26 (book/static) E Que DuPont systern of analysis Use the following 2016 financial information for ATT and Verizon to conduct a DuPont system of analysis for each company ATT $163,786 13,333 403,821 24,110 Verizon Sales Eamings availablo for common stockholders Total assets Stockholders equity 125,980 13,608 244,180 24,032 a. Which company has the higher net profit margin? Higher asset turnover? b. Which company has the higher ROA? The higher ROE? a. Net profit margin (Round to three decimal places) ATT Verizon Not profit margin Enter any number in the edit fleids and then click Check Answer Check Answ Clear All remaining

Explanation / Answer

Solution :-

ATT Verizon Sales 163786 125980 Earning for equity 13333 13608 total Assets 403821 244180 Stockholders equity 124110 24032 Net Profit Margin (13333/163786) (13608/125980) (Earnings / Sales) 8.14% 10.80% Company Verizon has high net profit margin Asset Turnover (163786/403821) (125980/244180) (Sales / To. Assets) 40.56% 51.59% Company Verizon has high Assets turnover ratio ROA (13333 / 403821) (13608/244180) (Net income / To. Assets) 3.30% 5.57% Company Verizon has high ROA ROE (13333/124110) (13608/24032) (Net income/Equity) 10.74% 56.62% Company Verizon has high ROE Now feel free to ask any query through comments as your satisfaction is very valuable

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