Assignment
DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to:
a. Construct the DuPont system of analysis for both Johnson and the industry.
b. Evaluate Johnson (and the industry) over the 3-year period.
c. Indicate in which areas Johnson requires further analysis. Why?
|
Johnson
|
2013
|
2014
|
2015
|
|
Financial leverage multiplier
|
1.75
|
1.75
|
1.85
|
|
Net profit margin
|
0.059
|
0.058
|
0.049
|
|
Total asset turnover
|
2.11
|
2.18
|
2.34
|
|
Industry averages
|
|
|
|
|
Financial leverage multiplier
|
1.67
|
1.69
|
1.64
|
|
Net profit margin
|
0.054
|
0.047
|
0.041
|
|
Total asset turnover
|
2.05
|
2.13
|
2.15
|