May 02, 2011 02:15
I recently finished an accounting project for school in which we were tasked with evaluating a company based on various qualitative and quantitative factors.
Source: Capital IQ
Ratios/Multiples - All are LTM 4/2/11
ROA: 16.8%
ROE: 27%
Profit Margin: 26.4%
D/E: 4.5%
Liab./Assets: 27.8%
D/E has been declining since 2008, while ROE has been increasing. Very interesting, considering that that they have made several acquisitions (namely, McAfee) and have been increasing their dividend Y-O-Y. Meanwhile, P/E ratio is floating around 10. They have, of course, been paying off their debts to the new Arizona facility that they are constructing (as well as other obligations), but also increasing their ROE.... pretty crazy.