question is in image DuPont system of analysis Use the following ratio information for JohnsonInternational 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?Johnson2010 2011 2012Financial leverage multiplier 1.751.751.85Net profit margin0.0590.0580.049Total asset turnover2.112.182.34Industry AveragesFinancial leverage multiplierNet profit margin1.671.691.640.0540.0470.041Total asset turnover2.052.132.15

Formula for making the Dupont analysis: Dupont analysis = Net profit margin*Asset turnover*Financial…

Answered: Pont | bartleby

Business

Finance

Pont

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 5PB

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Question

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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
2010 2011 2012
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
Net profit margin
1.67
1.69
1.64
0.054
0.047
0.041
Total asset turnover
2.05
2.13
2.15

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