Final Exam_Financial Accounting and Analysis of Financial Statements_Aalto_MBA

소개글

핀란드 Aalto 대학교 MBA 과정에서 과제로 작성한 리포트 입니다.

목차

1. Explain the following items
2. Company for presentation of your group
3. Your comments of understandings on our two class goals.

본문내용

(1) Formula: ROE= Return / Equity = NI(Net Income) / SE(Shareholders' Equity)
(2) Decomposition
ROE= Return / Equity = NI(Net Income) / SE(Shareholders' Equity)
= (NI / Sales) * (Sales/Assets) * (Assets / SE)
= (NI / Sales) * (Sales/Assets) * ( 1+ Liabilities/SE)
= Net Margin * Asset Turnover * Financial Leverage(or Leverage Ratio)
(3) Meaning of each component.
We can break ROE into 3components as above. In other words, this allows investors to determine what financial activities are contributing the most to the changes in ROE. First of which is operating profitability which is represented by Net Margin.

참고 자료

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