Using the following financial statement data, calculate the following ratios for 2013: Operating margin, asset turnover, interest burden, financial leverage, income tax rate, ROE using the dupont formula.
Income statment data | 2005 | 2013 |
Revenues |
542 |
979 |
Operating income |
38 |
76 |
Depreciation and Amortization |
3 |
9 |
Interst expense |
3 |
0 |
Pretax income |
32 |
67 |
Income taxes |
4 |
27 |
Net income after tax |
28 |
40 |
Balance Sheet |
|
|
Fixed assets |
41 |
70 |
Total assets |
648 |
898 |
working capital |
123 |
157 |
Total debt |
126 |
60 |
total shareholders equity |
399 |
681 |
Current stock price is $19.23
Discuss how interest burden and asset turnover have impacted ROE from 2005 to 2013.