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    Transféré par

    Karim Reza
    11 vues1 page
    This document contains calculations of return on equity (ROE) for 2009 and 2008 using two approaches - the traditional approach and an alternative approach. For 2009, ROE was 22.47% using the traditional method and 26% using the alternative method. In 2008, ROE was 5.15% and 20% using the traditional and alternative methods respectively. Net income, sales, assets, and equity figures are also provided for the two years.

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    This document contains calculations of return on equity (ROE) for 2009 and 2008 using two approaches - the traditional approach and an alternative approach. For 2009, ROE was 22.47% using the traditional method and 26% using the alternative method. In 2008, ROE was 5.15% and 20% using the traditional and alternative methods respectively. Net income, sales, assets, and equity figures are also provided for the two years.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    11 vues1 page

    Assignment

    Transféré par

    Karim Reza
    This document contains calculations of return on equity (ROE) for 2009 and 2008 using two approaches - the traditional approach and an alternative approach. For 2009, ROE was 22.47% using the traditional method and 26% using the alternative method. In 2008, ROE was 5.15% and 20% using the traditional and alternative methods respectively. Net income, sales, assets, and equity figures are also provided for the two years.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    2009 2008

    ROE calculation
    3.1 ROE= Net income 995561 176533
    (Net icome)/(SH equity) SH equity 4430882 22.47% 3426277 5.15%
    3.1.1 Traditional approach
    Net profit mergin 0.13 0.028
    Asset turnover 0.436 0.348
    ROA 0.05 0.009744
    ROE Financial Leverage 3.9 19.50% 5.2 5.07%
    3.1.2 Alternative approach
    NOPAT 891935 394437.22
    Sales 7543725 6211938
    ROE= Net Interest expense
    (NOPAT/Sales)+ after tax 574474 217904.22
    {(NOPAT/Sales)-
    (Net inte expense/Net debt)* Net debt 10466063 11256024
    (Net debt/Equity)} Equity 4430882 26.00% 3426277 20%

    ROE on Traditional approach ROE on Traditional approach


    25.0%

    20.0%

    15.0%

    10.0%

    5.0%

    0.0%
    Year 2009 Year 2008

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