What advice would you give those who want to invest in this company? (recommendations) (based on profitability, productivity, leverage, disaggregation analysis)
What advice would you give those who want to invest in this company? (recommendations) (based on profitability, productivity, leverage, disaggregation analysis)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
What advice would you give those who want to invest in this company? (recommendations)
(based on profitability, productivity, leverage, disaggregation analysis)
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:
Expert Solution
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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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