Dupont Analysis on JC Penney and Nordstrom

Essay specific features

 

Issue:

Business

 

Written by:

Sarah J

 

Date added:

April 26, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

10 / 2703

 

Was viewed:

1509 times

 

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Essay content:

While Nordstrom posted a significant increase in ROE by 20% over prior year, Penney's ROE is up 152% over its 2004 ROE. While it is notable that both companies have strong 2005 ROE's and have increased their ROE's since 2004, there is a very large variance in ROE growth between the two companies...
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This suggests that although the 2005 ROE's are similar, the companies must have taken different paths to achieve these returns. Overall differences in net income reflect that Nordstrom saw its earnings driven by performance on continued operations, while Penney's achieved its result by showing earnings from discontinued operations...
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