ROE Decomposition

ROE decomposition Du pont decomposition of ROE LA wagon train?s ROE has decreased over the last tame years from 49.45% in 1988 to 15.22% in 1990. Profitability (NI/Sales) has also autumn dramatically from 9.8 % in 1988 to 3.47% in 1990. summation turnover has remove magnitude from 1.69 to 2.48, because while sales cause quadrupled, keep down pluss have that increase by about 2.7 times. Profitability The gross gelt margin has dropped from 42.29% in 1988 to 34.41% in 1990. LA Gear?s operational dinero margin has decreased from 18.52% to 7.75%. This is due to a dramatic increase in operating expenses. The decreasing dissolve derive margins (9.85% to 3.

47%) is due to lower gross profit margins and expenses. plunder profit margin, gross profit margin and operating profit margin are all below attention standards. Asset turnover La Gear?s total asset turnover has increased from 1.69 to 2.48 due to the fact that sales has increased at a faster rate than enrolment levels have. armoury turnove...If you want to get a full essay, point it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper