Required: Compute the DuPont ratios (profit margin, asset turnover, and financial leverage ratios) for Amazon and Kroger given these numbers for 2012-2017. Check your numbers to make sure that Profit marginx Asset turnover x Financial leverage = Return on equity. (Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)
Required: Compute the DuPont ratios (profit margin, asset turnover, and financial leverage ratios) for Amazon and Kroger given these numbers for 2012-2017. Check your numbers to make sure that Profit marginx Asset turnover x Financial leverage = Return on equity. (Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter15: Ratio Analysis (ratioa)
Section: Chapter Questions
Problem 2R: The comparative financial statements of Global Technology are as follows: Open the file RATIOA from...
Related questions
Question
![Required:
Compute the DuPont ratlos (profit margin, asset turnover, and financial leverage ratlos) for Amazon and Kroger given these numbers
for 2012-2017. Check your numbers to make sure that Profit margin x Asset turnover Financial leverage = Return on equity.
(Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)
Data: Problem 6-2 Data.xlsx. (Students can download this data file solve this problem.)
AMZN
KR
Year
2017
2016
2015
2014
2013
2012
Year
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
Year
Year
Sales Revenue
$177,866,000,000
$135,987,000,000
$107,006,000,000 $ 596,000,000
$ 88,988,000,000 $ (241,000,000) $54,505,000,000
$ 74,452,000,000 $ 274,000,000 $ 40,159,000,000
$ 61,093,000,000 $ (39,000,000) $32,555,000,000
Sales Revenue
$122,662,000,000
$115,337,000,000
$109,830,000,000
$108,465,000,000
$ 98,375,000,000
$ 96,619,000,000
Net Income
Assets
$131,310,000,000
$ 3,033,000,000
$ 2,371,000,000 $ 83,402,000,000
$ 64,747,000,000
Profit Margin
Profit Margin
Net Income
$ 1,889,000,000
$ 1,957,000,000
$ 2,049,000,000
$ 1,747,000,000
$ 1,531,000,000
$ 1,508,000,000
AMZN
Asset
Turnover
KR
Asset
Turnover
Financial
Leverage
Financial
Leverage
Assets
$37,197,000,000
$36,505,000,000
$33,897,000,000
$30,497,000,000
$29,281,000,000
$24,634,000,000
Return on
Equity
Return on
Equity
Stockholders'
Equity
$27,709,000,000
$19,285,000,000
$13,384,000,000
$10,741,000,000
$ 9,746,000,000
$ 8,192,000,000
Stockholders'
Equity
$ 6,905,000,000
$ 6,710,000,000
$ 6,798,000,000
$ 5,442,000,000
$5,395,000,000
$ 4,214,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba5f5edb-dba4-4f34-b5b5-3c5c1d446d6e%2F9c0d403e-25d7-4f91-940f-81a92a4465fe%2F0ecx25_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
Compute the DuPont ratlos (profit margin, asset turnover, and financial leverage ratlos) for Amazon and Kroger given these numbers
for 2012-2017. Check your numbers to make sure that Profit margin x Asset turnover Financial leverage = Return on equity.
(Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.)
Data: Problem 6-2 Data.xlsx. (Students can download this data file solve this problem.)
AMZN
KR
Year
2017
2016
2015
2014
2013
2012
Year
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012
Year
Year
Sales Revenue
$177,866,000,000
$135,987,000,000
$107,006,000,000 $ 596,000,000
$ 88,988,000,000 $ (241,000,000) $54,505,000,000
$ 74,452,000,000 $ 274,000,000 $ 40,159,000,000
$ 61,093,000,000 $ (39,000,000) $32,555,000,000
Sales Revenue
$122,662,000,000
$115,337,000,000
$109,830,000,000
$108,465,000,000
$ 98,375,000,000
$ 96,619,000,000
Net Income
Assets
$131,310,000,000
$ 3,033,000,000
$ 2,371,000,000 $ 83,402,000,000
$ 64,747,000,000
Profit Margin
Profit Margin
Net Income
$ 1,889,000,000
$ 1,957,000,000
$ 2,049,000,000
$ 1,747,000,000
$ 1,531,000,000
$ 1,508,000,000
AMZN
Asset
Turnover
KR
Asset
Turnover
Financial
Leverage
Financial
Leverage
Assets
$37,197,000,000
$36,505,000,000
$33,897,000,000
$30,497,000,000
$29,281,000,000
$24,634,000,000
Return on
Equity
Return on
Equity
Stockholders'
Equity
$27,709,000,000
$19,285,000,000
$13,384,000,000
$10,741,000,000
$ 9,746,000,000
$ 8,192,000,000
Stockholders'
Equity
$ 6,905,000,000
$ 6,710,000,000
$ 6,798,000,000
$ 5,442,000,000
$5,395,000,000
$ 4,214,000,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 79 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning