Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 14, Problem 2ADM
1.
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
Given info: Items of financial statement
The following ratios for three years:
- (a) Return on total assets
- (b) Return on
stockholders’ equity - (c) Earnings per share
- (d) Dividend yield
- (e) Price – earnings ratio
2.
To determine
To evaluate: D’s profitability
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Deere & Company 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 pershare amounts):
Please see the attachment for details:
1. Calculate the following ratios for each year, rounding ratios and percentages to one decimal place, except for per-share amounts:a. Return on total assetsb. Return on stockholders’ equityc. Earnings per shared. Dividend yielde. Price-earnings ratio2. Based on these data, evaluate Deere’s profitability.
Analyze Deere & Company
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)
Preferred dividends
$1,523.9 $1,940.0 $3,161.7
$ 0.00
$ 763.7 $ 680.0 $ 664.0
$0.00
$ 0.00
Interest expense
Shares outstanding for computing earnings per share
315
334
363
Cash dividend per share
$ 2.40
$ 2.40
$ 2.22
$ 57,965 $ 59,642 $ 60,429
$ 6,644 $ 7,912 $ 9,667
$ 92.03 $ 81.10 $ 85.58
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…
Analyze Deere & Company
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
Preferred dividends
$ 0.00
$ 763.7 $ 680.0 $ 664.0
$ 0.00
$0.00
Interest expense
Shares outstanding for computing earnings per share
315
334
363
Cash dividend per share
$ 2.40
$ 2.40
$ 2.22
$ 57,965 $ 59,642 $ 60,429
$ 6,644 $ 7,912 $ 9,667
$ 92.03 $ 81.10 $ 85.58
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…
Chapter 14 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 14 - Prob. 1DQCh. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 1BECh. 14 - Prob. 2BECh. 14 - Prob. 3BECh. 14 - Prob. 4BECh. 14 - Prob. 5BECh. 14 - Prob. 6BECh. 14 - Prob. 7BECh. 14 - Prob. 8BECh. 14 - Prob. 9BECh. 14 - Prob. 10BECh. 14 - Prob. 11BECh. 14 - Prob. 1ECh. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Current position analysis The bond indenture for...Ch. 14 - Prob. 9ECh. 14 - Accounts receivable analysis Xavier Stores Company...Ch. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Ratio of liabilities to stockholders equity and...Ch. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 24ECh. 14 - Prob. 25ECh. 14 - Comprehensive income Anson Industries, Inc.,...Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Prob. 5PACh. 14 - Prob. 1PBCh. 14 - Prob. 2PBCh. 14 - Prob. 3PBCh. 14 - Prob. 4PBCh. 14 - Prob. 5PBCh. 14 - Prob. 1FSACh. 14 - Prob. 1ADMCh. 14 - Prob. 2ADMCh. 14 - Prob. 3ADMCh. 14 - Prob. 1TIFCh. 14 - Prob. 3TIF
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