What advice would you give those who want to invest in this company? (recommendations)  (based on profitability, productivity, leverage, disaggregation analysis)

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 25P: LO.2 Oak Corporation has the following general business credit carryovers. If the general business...
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What advice would you give those who want to invest in this company? (recommendations) 

(based on profitability, productivity, leverage, disaggregation analysis)

Changes (%)
2018-2019
-0.054
(1)
(2)
(3)
2020
2019
2018
2019-2020
ROE
0.401
0.424
0.194
1.181
Disaggregation 1
0.144
0.065
0.047
-0.096
ROA
0.151
1.211
FL (Financial Leverage)
2.664
2.947
2.988
-0.013
ROA x FL
0.401
0.424
0.194
-0.054
1.181
Disaggregation 2
PM (Profit Margin)
0.310
0.312
0.150
-0.007
1.077
AT (Asset Turnover)
0.487
0.461
0.433
0.054
0.065
FL
2.664
2.947
2.988
-0.096
-0.013
PMXATΧFL
0.401
0.424
0.194
-0.054
1.181
Recommendations:
Transcribed Image Text:Changes (%) 2018-2019 -0.054 (1) (2) (3) 2020 2019 2018 2019-2020 ROE 0.401 0.424 0.194 1.181 Disaggregation 1 0.144 0.065 0.047 -0.096 ROA 0.151 1.211 FL (Financial Leverage) 2.664 2.947 2.988 -0.013 ROA x FL 0.401 0.424 0.194 -0.054 1.181 Disaggregation 2 PM (Profit Margin) 0.310 0.312 0.150 -0.007 1.077 AT (Asset Turnover) 0.487 0.461 0.433 0.054 0.065 FL 2.664 2.947 2.988 -0.096 -0.013 PMXATΧFL 0.401 0.424 0.194 -0.054 1.181 Recommendations:
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Before investing in any companies’ securities, performance and growth is evaluated by considering various factors to make an accurate decision.

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