Hints: You may want to look at each of the components of ROE and compare those. You may
want to look up (another book, online, etc) DuPont Identity or DuPont Analysis. Realize the components you need to analyze may or may not be in the spreadsheet you download form net advantage. If not find what you need but make sure you document where you find any data used. (Yahoo finance is a good site and there are others.)
For your deliverable:
Include the downloaded industry spreadsheet for the industry you selected.
Identify the firms you selected within the spreadsheet by changing the color of the font for that firm on each tab to red.
Prepare a table that calculates the ROE for each firm using the three components. Make sure each column is labeled. (You should have columns that are labeled ROE, Net Profit Margin, Asset Turnover, Equity Ratio) Create a similar table for the market value measures.
Write a brief paper; about two pages maximum (2 plus/minus a half page). Paper should
address the reasons why one firm has a high ROE, why one firm has a low ROE and what could be done to improve the lower performing firm based on ROE (if it is really performing at a lower level). Perform similar contrast and comparisons for the market value ratios.
Be sure to address issues such as marketing, asset utilization, financing and if your chosen firm appears to be under or overvalued.