Overview
I am in charge of part A. I need to do a profitability analysis of Endeavor Holding Inc and compare it to one of their competitors Genisus Sports. I need it to be on excel with the formulas and I am just horrible at it. Please help. I will attach the assignment below.
A. (Accuracy - 40 points) Use the five years of financial information prepared for the first deliverable, and perform Profitability Analysis for your Company and its competitor. You have to show all the calculations or formula in the Excel file. In other words, you CANNOT just enter a hard code data in each ratio calculation.
Profitability |
Average stockholders' equity |
Return on equity (ROE) |
Industry ROE |
1.0 DuPont Analysis |
Return on assets (ROA) |
Industry ROA |
Financial leverage (FL) |
Industry FL |
Return on equity (ROE) |
ROE disaggregation: Factor driving profitability, productivity & financial leverage |
2.0 ROA disaggregation |
Profit margin (PM) |
Industry PM |
Total assets turnover (AT) |
Industry AT |
Return on assets (ROA) |
2.1 Factors behind productivity |
Gross profit margin (GPM) |
Industry GPM |
Operating expense margin (OEM) |
Income profit margin (IPM) |
Industry IPM |
2.2 Factors behind productivity |
a) Analysis of working capital components |
Days inventory outstanding (DIO) |
Industry DIO |
Accounts receivable turnover |
Days sales outstanding (DSO) |
Industry DSO |
Accounts payable turnover |
Days payable outstanding (DPO) |
Industry DPO |
Cash conversion cycle (CCC) |
Industry CCC |
Analyze CCC overtime: |
+ Days inventory outstanding |
+ Days sales outstanding |
- Days payable outstanding |
= Cash conversion cycle (CCC) |
b) Analysis of property, plant and equipment (PPE) |
PPE turnover = sales / average (PPEs) |
Industry PPE turnover |
c) Analysis of financial leverage (FL) |
Total liabilities -to-equity |
Times interest earned ratio |
Industry Total liabilities -to-Total S. Equity |
Industry Times interest earned ratio |
- Analyze financial ratios of your company and compare them to those of the industry benchmarks.
- Use formulas when computing financial ratios and do not hard code data.