Assignment

Use the following data for Apple and Dell for year 2008 (real data, in $ million):

Required:

a) compute the ROI for each company.

Apple ROI=%(if you get say 12.5%, enter 12.5, not 12.5% or 0.125)
Dell ROI=%

b) use the DuPont method to decompose ROI into ROI = profit margin * asset turnover.

In other words, compute profit margin and asset turnover for each company:

Apple profit margin=, asset turnover=(Enter both as a fraction of 1, not as percentage. I.e., if the profit margin is 0.045 (4.5%) and asset turnover is 3.42 (342%), enter 0.045 and 3.42)

Dell profit margin=, asset turnover=

If you multiply profit margin * asset turnover, you should get the ROI from part (a)

c) Which company has higher profit margin? Does it make sense, based on what you know about Apple and Dell?