Overview of Financial Statements
a. The DuPont Analysis on EdlerCare is as follows:
a. DuPont Analysis
ElderCare
Industry Avg
Total Margin
1.8%
3.5%
Total Asset Turnover
0.8
1.5
Equity Multiplier
7.0
2.5
ROE
16.2%
13.1%
ElderCare's return on equity is higher than that of the industry average. What the DuPont analysis does is it reveals the sources of that return on equity. In the case of ElderCare, having a higher than average ROE is not necessarily good. The reason is that the single biggest contributor to the ROE for ElderCare is that it is highly-leveraged. It has a much higher equity multiplier than the industry average. It's other metrics are worse. It has a lower margin and a lower asset turnover than the industry average. For a company that is performing well, it would be better to see the asset turnover and the margin higher than the industry average. So for ElderCare the ROE is a bit of a deceptive figure because the company has a lot of debt, and not much equity value relative to the size of the company.
b.
b Ratios
ElderCare
Industry Avg
ROA
2.31%
5.20%
Current Ratio
1.4
2
Days cash on hand
12.5
22 days
Days in patient accounts
24.9
19 days
Debt ratio
68%
71%
Debt to equity ratio
6.0
2.5
TIE
0.4
2.6
Fixed Asset Turnover
1.7
1.4
The financial ratios also highlight that ElderCare is performing poorly relative to its industry...
…is the fact that is has six more days patient accounts. Put together, ElderCare's cash conversion cycle is significantly longer than the industry average, and that is a red flag, especially for a company that has a high degree of leverage, which when we look at the debt-to-equity ratio, is much higher than the industry average. Again, this figure highlights that there is far too much in terms of current liabilities compared with other companies in the industry. It is not great that the biggest category is "accrued expenses" it is living on credit and that does not help the…
DuPont Kevlar Aramid Industrial Fiber DuPont is the world's leader in many different industry segments and have a strong dedication to research and development. This focus is embedded in the company's history and culture which has a foundation built in science. The company was once a major supplier to the tire industry until the development of the radial tire. During this industry transition, DuPont considered developing its Kevlar product for use
DuPont Business Strategy: Competitive Advantage and Comparative Advantage Porter's Forces PEST Analysis Matching Company Capabilities and the External Environment DuPont's Competitive Position SWOT Analysis and Mann's Country Profile Discussion, Conclusion, and Recommendations Porter's Forces PEST Analysis Matching Company Capabilities and the External Environment DuPont's Competitive Position SWOT Analysis and Mann's Country Profile Discussion, Conclusion, and Recommendations The DuPont Company is renowned as one of the best known manufacturing facilities in the International community. It was started in 1802 by the French Immigrant Eleuthere
DuPont Since DuPont's beginnings in the 19th century, the company has been continually at the forefront for: innovation, research and development. This is because they were focused on addressing host of different needs in society through: using various techniques to improve the lives of their customers and the different organizations they were working with. As, time went by the corporation continued to innovate and adapt to the various changes they were
Financial statement analysis is a tool by which one can examine the publicly-available financial statements to determine the financial condition of a company. The role of the financial statements is to provide information for both internal and external stakeholders, including shareholders and regulators, about a company's finances. Thus, the SEC demands that financial statements are produced in a specific format so that there is easy comparison between companies and across
Financial Statement Analysis The following is an equity research report on Starbucks. The company competes primarily in the quick service food industry, where it holds the #5 market share in the United States, and #1 in its segment of coffee (QSR Magazine, 2011). The company had revenues last fiscal year (ended 10/2/11) of $11.7 billion and net income of $1.245 billion. The current stock price is $43.91, which gives the company
Financial Statement Analysis Westpac (WBC) Westpac banking corporation is one of the largest banking organizations in Australia, and the largest bank in New Zealand. Westpac provides arrays of banking and financial services in Austria, which include institutional banking, retail banking, and wealth management services. Established in 1817, Westpac is the first bank established in Australia. Since its formation, Westpac has increased in its strength, and at present Westpac has the market capitalisations
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now