Deere & Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere's credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) $1.523.9 $1.940.0 $3.161.7 $ 0.00 $ 763.7 $ 680.0 $ 664.0 Preferred dividends $ 0.00 $0.00 Interest expense Shares outstanding for computing earnings per share 315 334 363 $ 2.22 $ 2.40 $ 57,965 $ 59.642 $ 60,429 $ 6,644 5 7.912 $ 9.667 $ 92.03 $ 81.10 $85.58 Cash dividend per share $ 2.40 Average total assets Average stockholders' equity Average stock price per share 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place, except for per-share amounts. Round per-share amounts to two decimal places.): Year 3 Year 2 Year 1

Deere & Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere's credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) $1.523.9 $1.940.0 $3.161.7 $ 0.00 $ 763.7 $ 680.0 $ 664.0 Preferred dividends $ 0.00 $0.00 Interest expense Shares outstanding for computing earnings per share 315 334 363 $ 2.22 $ 2.40 $ 57,965 $ 59.642 $ 60,429 $ 6,644 5 7.912 $ 9.667 $ 92.03 $ 81.10 $85.58 Cash dividend per share $ 2.40 Average total assets Average stockholders' equity Average stock price per share 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place, except for per-share amounts. Round per-share amounts to two decimal places.): Year 3 Year 2 Year 1

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3MAD: Deere Company (DE) manufactures and distributes farm and construction machinery that it sells...

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Deere Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deeres credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): 1. Calculate the following ratios for each year. Round ratios and percentages to one decimal place, except for per-share amounts, which should be rounded to the nearest cent. a. Return on total assets b. Return on stockholders' equity c. Earnings per share d. Dividend yield e. Price-earnings ratio 2. Based on these data, evaluate Deeres profitability.
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