Financial analysis case report Study Example | Topics and Well Written Essays - 1000 words

Financial analysis report - Case Study subjectTable 1 Dupont Dupont Result 2011 2010 2009 Lowe 0.11 0.09 0.12 Home Depot 0.18 0.14 0.13 John Guerard (37) emphasized the Dupont formula is a efficacious tool for making financial decisions. making. Based on the Dupont data above, it is highly recommended that the ships alliance should increase the issuance of stores selling the companionships products and services. The company should focus on selling more(prenominal) quality products and fling more quality services to the clients. The company should also engage in research and development to recognize new products. The company should also improve the quality of the companys current home benefit products and services. The company should sell the products at affordable prices. The company should advertise the many benefits of buying the companys products and services. The companys advertisement expense should represent 10 percent of the companys number expenses shown in the bal ance sheet. The company must target a ten percent increase in its current months sales. An Based on the financial statements of Lowe Company and Home Depot Company, the Dupont results powerful state that the Lowes company the companies discrete running(a) and marketing activities significantly ascertain the overall take place on assets for both companies. The Dupont financial statement calculation indicates that Lowes generated a 0.12 Dupont during 2009. ... n is .11 Based on the Home Depot calculation, the Dupont results strong state that the company the companies discrete operational and marketing activities significantly influence the overall return on assets for both companies. The Dupont financial statement calculation indicates that Home Depots generated a .13 Dupont during 2009. The 2010 Dupont computation shows the company generated an increase in the Dupont results. The 2010 Dupont financial statement calculation is .14. The 2011 Dupont computation shows the company gen erated an increase in the Dupont results. The 2011 Dupont financial statement calculation is .18 Change over time analysis of whats red on using additional financial and performance data. Home Depots setting up more stores compared to Lowes is the main reason for Home Depots taking the lone plot of ground as the worlds no. 1 home improvement retail store. Setting more branches precipitates to more revenues. Table 2 Net Profit Margin 2011 2010 2009 Lowe 0.04 0.04 0.05 Home Depot 0.05 0.04 0.03 Based on the financial statements of Lowe Company and Home Depot Company, the Net profit margin results strong state that the company the companies discrete operational and marketing activities significantly influence the corresponding net profit margin for both companies. The net profit margin indicates that Lowes generated a 0.05 result. The 2010 net profit margin computation shows the company generated a decrease in the net profit margin result. The 2010 net profit margin is .04. The 2011 net profit margin computation shows the company generated an increase in the net profit margin results. The 2011 Dupont financial statement calculation is .04 The Net profit margin results strong state that the company the companies discrete operational