Financial Ratios and Total Assets Turnover Essay

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TEAM CA$HFLOW
Analysis Project
On
Mahsa Eskandari
Jerry Gutierrez
Ethelyn Martiz
Brandon Pisciotta

Introduction – Who is GE?

Technology
Infrastructure

5

Energ y Core
Competencies

Healthca re 2

Consumer/Indus trial Capital

• We’ll be conducting a DuPont analysis on GENERAL
ELECTRIC years 2011, 2012, and 2013. Then, we’ll be comparing year 2013 with:

• Year 2013

• Year 2013

• And then proceed to compare all year 2013 numbers with Industry averages

Formula

Financial Statement Information
(In millions)

2013

2012

$13,335

$13,864

$14,443

Sales

$146,045

$146,684

$146,542

Total Assets

$656,560

$684,999

$718,189

Shareholders’ Equity

$136,783

$128,470

$118,134

Net Income

2011

(In millions)

DuPont Ratio Breakdowns

ROE2011 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($14,443/$146,542) x ($146,542/$718,189) x ($718,189/$118,134)

(9.855%)

x

(.204)

x

(6.079)

= 12.22%

(5.331)

= 10.78%

(4.8)

= 9.73%

ROE2012 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($13,864/$146,684) x ($146,684/$684,999) x ($684,999/$128,470)

(9.451%)

x

(.214)

x

ROE2013 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($13,335/$146,045) x ($146,045/$656,560) x ($656,560/$136,783)

(9.131%)

x

(.222)

x

(In millions)

ROE2013 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($1,462/$29,102) x ($29,102/$33,132) x ($33,132/$14,005)

(5.024%)

x

(.878)

x

(2.366)

= 10.44%

(In millions)

ROE2013 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($5,500/$94,662) x ($94,662/$127,165) x ($127,165/$35,709)

(5.810%)

x

(.744)

x

(3.561)

= 15.39%

Profit Margin 2011 2012
2013

6.079

12.22%

9.451%

.214

5.331

10.78%

9.131%

.222

4.8

5.024%

5.810%
Profit Margin

Industry

ROE

.204

Profit Margin
2013

Equity Multiplier

9.855%

Profit Margin
2013

Total Assets Turnover

9.07%

Total Assets Turnover
.878
Total Assets Turnover
.744
Total Assets Turnover
.811

9.73%

Equity Multiplier

ROE

2.366

10.44%

Equity Multiplier
3.561
Equity Multiplier
2.64

ROE
15.39%
ROE
17.55%

Analysis of DuPont Ratios
ROE2012 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($13,864/$146,684) x ($146,684/$684,999) x ($684,999/$128,470)

(9.451%)

x

(.214)

x

(5.331)

= 10.78%

(4.8)

= 9.73%

ROE2013 = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)

= ($13,335/$146,045) x ($146,045/$656,560) x ($656,560/$136,783)

(9.131%)

x

(.222)

x

• The
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