The Financial Cockpit: Three Levers and One Flight Plan Harvard Case Solution & Analysis

This case describes the use and interpretation of DuPont model of financial indicators, in particular, the following four: return on sales, asset turnover, leverage and return on equity. Students consider how these factors are used to evaluate the financial performance of the company for one year, with the passage of time, and in comparison with other companies inside and outside the industry focal point of the company. They will also learn how these figures give an idea of ​​the business model of the company in the field, he can earn productivity with which it uses its assets, and the aggressiveness of the company (or its absence) in the use of borrowed funds to finance their activities. The case goes back to the basic premise that "ROE is the ratio most commonly used to analyze the profitability of the business" and that "it is important to both current and prospective shareholders." In addition, in the framework of DuPont, ROE, the position is the product of three other ratios shown above. Thus, the main character in the case, Jill Case, had tended to model DuPont. The case ends with a set of questions that Jill Case left her subsequent follow-up, they provide a basic task for students. "Hide
by Mark E. Haskins Source: Darden School of Business 5 pages. Publication Date: July 29, 2010. Prod. #: UV5225-PDF-ENG

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