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Du Pont analysis: effect of accounting change, differences in ROE

See attached file.

Could you please use the attached Income Statement and the Balance Sheet for fiscal years 2003 and 2002 to do a Du Pont analysis.

Use income before the effect of changes in accounting principles for goodwill in your calculations.

What factors caused the differences in ROE between 2003 and 2002.

What financial statements and information is needed to complete your analysis.


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See attached file.

Comments on growth

ROE increased as a result of an improvement in Asset Turnover, Revenue grew by more than Assets.
Growth in Roe was tempered by a lower Equity multiple, Assets declined by 5% while ...

Solution Summary

In both a narrative statement and an Excel formatted analysis, the solution explains the questions.