Name: Jaquelyn Miciano

Company: Reynolds American Inc.

1. Balance Sheet
Period Ending

31-Dec-15

Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets

$
$
$
$
$

2,567,000.00
149,000.00
1,173,000.00
1,734,000.00
564,000.00

Total Current Assets

Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges

6,187,000.00
-
1,255,000.00
15,993,000.00
29,467,000.00
-
322,000.00
-

Total Assets

53,224,000.00

$
$
$

3,518,000.00
506,000.00
1,267,000.00

Total Current Liabilities

Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

$
$
$
$

5,291,000.00
16,941,000.00
2,504,000.00
10,236,000.00
-
-

Total Liabilities

34,972,000.00

-
-
-
-
188,000.00

$
$
$
$

Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities

Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings

Treasury Stock
Capital Surplus
Other Stockholder Equity

$
$

-
18,402,000.00
(338,000.00)

Total Stockholder Equity

18,252,000.00

Net Tangible Assets

(27,208,000.00)

31-Dec-14

31-Dec-13

$
$
$
$
$

966,000.00
872,000.00
1,281,000.00
204,000.00

$
$
$
$
$

1,500,000.00
821,000.00
1,127,000.00
207,000.00

3,323,000.00
-
1,203,000.00
8,016,000.00
2,421,000.00
-
233,000.00
-

3,655,000.00
-
1,074,000.00
8,011,000.00
2,417,000.00
-
245,000.00
-

$
$
$
$

$
$
$
$

15,196,000.00 $

15,402,000.00

$
$
$

2,318,000.00 $
450,000.00
776,000.00 $

1,912,000.00
-
1,164,000.00

$
$
$
$

3,544,000.00
4,633,000.00
2,114,000.00
383,000.00
-
-

$
$
$
$

3,076,000.00
5,099,000.00
1,402,000.00
658,000.00
-
-

10,674,000.00 $

10,235,000.00

-
-
-
-
(1,314,000.00) $

-
-
-
-
(1,348,000.00)

$
$

-
6,200,000.00 $
(364,000.00) $

-
6,571,000.00
(56,000.00)

4,522,000.00 $

5,167,000.00

(5,915,000.00) $

(5,261,000.00)

Name: Jaquelyn Miciano

Company: Reynolds American Inc.
2. Income Statement
Period Ending
Total Revenue
Cost of Revenue

$
$

31-Dec-15
10,675,000.00
4,688,000.00

Gross Profit

5,987,000.00

$
$
$

-
(1,083,000.00)
99,000.00
18,000.00

Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses

Operating Income or Loss

6,953,000.00

Income from Continuing Operations

Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

$
$
$
$
$

1,000.00
6,954,000.00
570,000.00
6,384,000.00
3,131,000.00
-

Net Income From Continuing Ops

3,253,000.00

Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Net Income
Preferred Stock And Other Adjustments

3,253,000.00
-

Net Income Applicable To Common Shares

3,253,000.00

$
$

31-Dec-14
8,471,000.00
4,058,000.00

$
$

31-Dec-13
8,236,000.00
3,678,000.00

4,413,000.00

4,558,000.00

-
1,871,000.00 $
- $
11,000.00 $

-
1,389,000.00
32,000.00
5,000.00

$
$

2,531,000.00

3,132,000.00

$
$
$
$
$

17,000.00
2,548,000.00
286,000.00
2,262,000.00
817,000.00
-

$
$
$
$
$

(132,000.00)
3,000,000.00
259,000.00
2,741,000.00
1,023,000.00
-

1,445,000.00

1,718,000.00

25,000.00
-
-
-

1,470,000.00 $
-

1,718,000.00
-

1,470,000.00

1,718,000.00

Name: Jaquelyn Miciano

Company: Reynolds American Inc.
3. Dupont Decomposition

2013
2014
2015

ROE
NI/Equity
33.25%
32.51%
17.82%

NI/Sales
20.86%
17.35%
30.47%

DuPont Analysis
Sales/Assets
Assets/Equity
53.47%
2.98
55.74%
3.36
20.06%
2.92

Current Assets/Current Liabilities

(Cash+Cash Equivalent+Short term Investments+Accounts Receivable)/Current Liabilities
3
Cash/Current Liabilities
1
2

3. Analysis

Reynolds American Inc., refered to as RAI, is one of the largest tobacco company in the United Sta
three years, the company's financial leverage increased by 13% from 2013 to 2014 but then declin
to 2015. The significant increases in intangible assets and long term debt are the contributing facto
financial leverage ratio.

In regards to Reynolds American Inc.'s liquidity position, the company's current ratio deteriorated
then improved from 2014 to 2015. Although the current ratio did not reach the 2013 level, the incr
puts the company in a less riskier position based on their current liabilities. However, the company
that is measured by the quick ratio has decreased by 31%% from 0.75 to 0.52 in 2013 to 0.52 in 20
the company does not have enough liquid assets to cover their current liabilities at that time. Howe
bounced back by 42% in 2015 from 0.52 to 0.75.

In looking at the company's profitability performance, Reynolds American Inc.'s return on equity sli
from 2013 to 2014 by 2% while being followed by a significant drop of 45% from 2014 to 2015. The
is largely due to a 64% decline in efficiency measured by the Asset Turnover ratio.

The company has undergone changes in their long-term growth strategy to keep up with the transf
tobacco industry as consumer preference shifts towards a healthier alternative. The company has b
smoke-free growth platforms for the future, which is reflected on their financials with the material i
assets in 2015.

Current Ratio
1.19
0.94
1.17

Liquidity
Quick Ratio2
0.75
0.52
0.74

Cash Ratio3
0.49
0.27
0.49

)/Current Liabilities

tobacco company in the United States. Based on the past

% from 2013 to 2014 but then declined by 13% from 2014
term debt are the contributing factors for this fluctuating

ompany's current ratio deteriorated from 2013 to 2014 but

id not reach the 2013 level, the increase in current assets
nt liabilities. However, the company's short term liquidity
om 0.75 to 0.52 in 2013 to 0.52 in 2014. This means that
current liabilities at that time. However, the quick ratio

s American Inc.'s return on equity slightly deteriorated

drop of 45% from 2014 to 2015. The decrease in the ROE
sset Turnover ratio.

h strategy to keep up with the transformation in the

thier alternative. The company has been investing in
on their financials with the material increase in intangible

Name: Jaquelyn Miciano

Company: Reynolds American Inc.
1. Historical Prices
Date
8/3/2015
7/1/2015
6/1/2015
5/1/2015
4/1/2015
3/2/2015
2/2/2015
1/2/2015
12/1/2014
11/3/2014
10/1/2014
9/2/2014
8/1/2014
7/1/2014
6/2/2014
5/1/2014
4/1/2014
3/3/2014
2/3/2014
1/2/2014
12/2/2013
11/1/2013
10/1/2013
9/3/2013
8/1/2013
7/1/2013
6/3/2013
5/1/2013
4/1/2013
3/1/2013
2/1/2013
1/2/2013
12/3/2012
11/1/2012
10/1/2012
9/4/2012
8/1/2012
7/2/2012
6/1/2012
5/1/2012
4/2/2012

RAI
Price
40.51
41.50
36.12
36.78
35.13
33.03
35.91
32.27
30.52
30.98
29.57
27.73
27.17
25.95
28.05
27.40
25.93
24.55
23.07
22.01
22.69
22.61
23.03
21.86
21.07
21.86
21.40
21.00
20.70
19.42
18.82
18.94
17.85
18.58
17.69
18.42
19.34
19.41
18.82
17.30
16.88

RAI
Return
-2.38%
14.91%
-1.81%
4.71%
6.37%
-8.04%
11.29%
5.73%
-1.48%
4.77%
6.63%
2.07%
4.69%
-7.46%
2.35%
5.67%
5.63%
6.41%
4.80%
-2.98%
0.34%
-1.79%
5.31%
3.78%
-3.64%
2.19%
1.87%
1.46%
6.59%
3.22%
-0.68%
6.15%
-3.93%
5.00%
-3.92%
-4.77%
-0.37%
3.12%
8.80%
2.47%
-1.47%

S&P 500
S&P 500
Difference
Price
Return
1,972.18
-6.26%
-3.88%
2,103.84
1.97%
-12.93%
2,063.11
-2.10%
-0.29%
2,107.39
1.05%
-3.66%
2,085.51
0.85%
-5.52%
2,067.89
-1.74%
6.30%
2,104.50
5.49%
-5.80%
1,994.99
-3.10%
-8.83%
2,058.90
-0.42%
1.06%
2,067.56
2.45%
-2.32%
2,018.05
2.32%
-4.31%
1,972.29
-1.55%
-3.62%
2,003.37
3.77%
-0.93%
1,930.67
-1.51%
5.95%
1,960.23
1.91%
-0.44%
1,923.57
2.10%
-3.57%
1,883.95
0.62%
-5.01%
1,872.34
0.69%
-5.72%
1,859.45
4.31%
-0.49%
1,782.59
-3.56%
-0.58%
1,848.36
2.36%
2.02%
1,805.81
2.80%
4.60%
1,756.54
4.46%
-0.85%
1,681.55
2.97%
-0.81%
1,632.97
-3.13%
0.51%
1,685.73
4.95%
2.75%
1,606.28
-1.50%
-3.37%
1,630.74
2.08%
0.62%
1,597.57
1.81%
-4.78%
1,569.19
3.60%
0.38%
1,514.68
1.11%
1.79%
1,498.11
5.04%
-1.11%
1,426.19
0.71%
4.64%
1,416.18
0.28%
-4.71%
1,412.16
-1.98%
1.94%
1,440.67
2.42%
7.19%
1,406.58
1.98%
2.34%
1,379.32
1.26%
-1.86%
1,362.16
3.96%
-4.84%
1,310.33
-6.27%
-8.74%
1,397.91
-0.75%
0.72%

3/1/2012
2/1/2012
1/3/2012
12/1/2011
11/1/2011
10/3/2011
9/1/2011
8/1/2011
7/1/2011
6/1/2011
5/2/2011
4/1/2011
3/1/2011
2/1/2011
1/3/2011
12/1/2010
11/1/2010
10/1/2010
9/1/2010

17.13
17.11
16.01
16.90
16.85
15.57
15.09
14.91
13.97
14.70
15.57
14.52
13.90
13.23
12.26
12.57
11.74
12.32
11.27

0.16%
6.88%
-5.29%
0.30%
8.22%
3.20%
1.18%
6.73%
-4.99%
-5.55%
7.19%
4.45%
5.13%
7.89%
-2.48%
7.04%
-4.70%
9.33%

1,408.47
1,365.68
1,312.41
1,257.60
1,246.96
1,253.30
1,131.42
1,218.89
1,292.28
1,320.64
1,345.20
1,363.61
1,325.83
1,327.22
1,286.12
1,257.64
1,180.55
1,183.26
1,141.20

3.13%
4.06%
4.36%
0.85%
-0.51%
10.77%
-7.18%
-5.68%
-2.15%
-1.83%
-1.35%
2.85%
-0.10%
3.20%
2.26%
6.53%
-0.23%
3.69%

2.97%
-2.82%
9.65%
0.56%
-8.73%
7.57%
-8.35%
-12.41%
2.85%
3.73%
-8.54%
-1.60%
-5.24%
-4.69%
4.75%
-0.51%
4.47%
-5.64%

Date
8/3/2015
7/1/2015
6/1/2015
5/1/2015
4/1/2015
3/2/2015
2/2/2015
1/2/2015
12/1/2014
11/3/2014
10/1/2014
9/2/2014
8/1/2014
7/1/2014
6/2/2014
5/1/2014
4/1/2014
3/3/2014
2/3/2014
1/2/2014
12/2/2013
11/1/2013
10/1/2013
9/3/2013
8/1/2013
7/1/2013
6/3/2013
5/1/2013
4/1/2013
3/1/2013
2/1/2013
1/2/2013
12/3/2012
11/1/2012
10/1/2012
9/4/2012
8/1/2012
7/2/2012
6/1/2012
5/1/2012
4/2/2012

RAI
S&P 500
Return
Return
-2.38%
-6.26%
14.91%
1.97%
-1.81%
-2.10%
4.71%
1.05%
6.37%
0.85%
-8.04%
-1.74%
11.29%
5.49%
5.73%
-3.10%
-1.48%
-0.42%
4.77%
2.45%
6.63%
2.32%
2.07%
-1.55%
4.69%
3.77%
-7.46%
-1.51%
2.35%
1.91%
5.67%
2.10%
5.63%
0.62%
6.41%
0.69%
4.80%
4.31%
-2.98%
-3.56%
0.34%
2.36%
-1.79%
2.80%
5.31%
4.46%
3.78%
2.97%
-3.64%
-3.13%
2.19%
4.95%
1.87%
-1.50%
1.46%
2.08%
6.59%
1.81%
3.22%
3.60%
-0.68%
1.11%
6.15%
5.04%
-3.93%
0.71%
5.00%
0.28%
-3.92%
-1.98%
-4.77%
2.42%
-0.37%
1.98%
3.12%
1.26%
8.80%
3.96%
2.47%
-6.27%
-1.47%
-0.75%

Date
8/3/2015
7/1/2015
6/1/2015
5/1/2015
4/1/2015
3/2/2015
2/2/2015
1/2/2015
12/1/2014
11/3/2014
10/1/2014
9/2/2014
8/1/2014
7/1/2014
6/2/2014
5/1/2014
4/1/2014
3/3/2014
2/3/2014
1/2/2014
12/2/2013
11/1/2013
10/1/2013
9/3/2013
8/1/2013
7/1/2013
6/3/2013
5/1/2013
4/1/2013
3/1/2013
2/1/2013
1/2/2013
12/3/2012
11/1/2012
10/1/2012
9/4/2012
8/1/2012
7/2/2012
6/1/2012
5/1/2012
4/2/2012

S&P 500
RAI
Return
Return
-6.26%
-2.38%
1.97%
14.91%
-2.10%
-1.81%
1.05%
4.71%
0.85%
6.37%
-1.74%
-8.04%
5.49%
11.29%
-3.10%
5.73%
-0.42%
-1.48%
2.45%
4.77%
2.32%
6.63%
-1.55%
2.07%
3.77%
4.69%
-1.51%
-7.46%
1.91%
2.35%
2.10%
5.67%
0.62%
5.63%
0.69%
6.41%
4.31%
4.80%
-3.56%
-2.98%
2.36%
0.34%
2.80%
-1.79%
4.46%
5.31%
2.97%
3.78%
-3.13%
-3.64%
4.95%
2.19%
-1.50%
1.87%
2.08%
1.46%
1.81%
6.59%
3.60%
3.22%
1.11%
-0.68%
5.04%
6.15%
0.71%
-3.93%
0.28%
5.00%
-1.98%
-3.92%
2.42%
-4.77%
1.98%
-0.37%
1.26%
3.12%
3.96%
8.80%
-6.27%
2.47%
-0.75%
-1.47%

-10%

-5%

3/1/2012
2/1/2012
1/3/2012
12/1/2011
11/1/2011
10/3/2011
9/1/2011
8/1/2011
7/1/2011
6/1/2011
5/2/2011
4/1/2011
3/1/2011
2/1/2011
1/3/2011
12/1/2010
11/1/2010
10/1/2010
9/1/2010

0.16%
6.88%
-5.29%
0.30%
8.22%
3.20%
1.18%
6.73%
-4.99%
-5.55%
7.19%
4.45%
5.13%
7.89%
-2.48%
7.04%
-4.70%
9.33%

3.13%
4.06%
4.36%
0.85%
-0.51%
10.77%
-7.18%
-5.68%
-2.15%
-1.83%
-1.35%
2.85%
-0.10%
3.20%
2.26%
6.53%
-0.23%
3.69%

3/1/2012
2/1/2012
1/3/2012
12/1/2011
11/1/2011
10/3/2011
9/1/2011
8/1/2011
7/1/2011
6/1/2011
5/2/2011
4/1/2011
3/1/2011
2/1/2011
1/3/2011
12/1/2010
11/1/2010
10/1/2010
9/1/2010

3.13%
4.06%
4.36%
0.85%
-0.51%
10.77%
-7.18%
-5.68%
-2.15%
-1.83%
-1.35%
2.85%
-0.10%
3.20%
2.26%
6.53%
-0.23%
3.69%

0.16%
6.88%
-5.29%
0.30%
8.22%
3.20%
1.18%
6.73%
-4.99%
-5.55%
7.19%
4.45%
5.13%
7.89%
-2.48%
7.04%
-4.70%
9.33%

45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
7/6/2009

11/18/2010

RAI Return
20%
15%
10%
5%

-10%

-5%

0%
0%
-5%
-10%

5%

10%

15%

RAI Price
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
7/6/2009

11/18/2010

4/1/2012

8/14/2013

12/27/2014

5/10/2016

Lab Assignment # 2
Name: Jaquelyn Miciano
Company: Reynolds American Inc.
1) Graph

Returns RAI vs S&P 500

20%

15%

10%

5%

0%

-5%

-10%
7/6/2009

11/18/2010

4/1/2012

RAI Return

8/14/2013

S&P 500 Return

2) Analysis

Reynolds American, Inc , RAI, stock has a positive correlation and relatively the same tre
return on RAI stock has been along the same lines and were generally moving the sam
difference of approximately 1.25% in returns. The return on RAI stock has a low volatility
increased volatility in the year 2015, particularly on the month of July.

I vs S&P 500

8/14/2013

12/27/2014

5/10/2016

S&P 500 Return

and relatively the same trend as the index S&P 500. The
generally moving the same amount and has an average
RAI stock has a low volatility from 2010 to 2014 and
th of July.

Lab Assignment # 4
Name: Jaquelyn Miciano
Company: Reynolds American Inc.
1) Stock Plot

RAI Price
45
40
35
30
25
20
15
10
5
0
7/6/2009

11/18/2010

4/1/2012

8/14/2013

12/27/2014

5/10/2016

For the past five years, the stock price for Reynolds American Inc. (RAI) has
been increasing despite the slow growth in the overall economy. The sales of
cigarettes was not affected by the drop of oil prices which reflects that there
is no relevant correlation between the two commodities. Because of the
continuous research on alternative cigarettes, the value of the stock is
increasing as the potential sales from new products are forecasted.

Lab Assignment # 3
Name: Jaquelyn Miciano
Company: Reynolds American Inc.
1) Graph

RAI Return
20%
15%
10%

f(x) = 0.5176977356x
+ 0.0179961522
5%

-10%

-5%

0%
0%

5%

10%

15%

-5%
-10%

2) Analysis
Based on five years of data, the return of Reynolds American Inc. (RAI) was at
0.5177 which is less than 1. This means that the stock will be less volatile than
the market as it was compared relative to the S&P 500. The RAI's stock is
approximately 50% less volatile than S&P 500 or the market. The beta provided
in the yahoo finance website is 0.6097 which is very close to the beta calculated
from the timeframe that was used in this analysis which was 0.5177. The value
of the beta coefficient shows that the share price is less sensitive to the
movement in the market prices. The beta also reflects that the cigarette industry
is less risky compared to the market.

15%

was at
tile than
k is
provided
calculated
he value
e
te industry

Name: Jaquelyn Miciano

Company: Reynolds American Inc.

Executive Summary

For the past five years, the stock price for Reynolds American Inc. (RAI) has been increasing despite
the overall economy. The sales of cigarettes was not affected by the drop of oil prices which reflect
relevant correlation between the two commodities. Because of the continuous research on alternat
value of the stock is increasing as the potential sales from new products are forecasted.

Based on five years of data, the return of Reynolds American Inc. (RAI) was at 0.5177 which is less
that the stock will be less volatile than the market as it was compared relative to the S&P 500. The
approximately 50% less volatile than S&P 500 or the market. The beta provided in the yahoo financ
which is very close to the beta calculated from the timeframe that was used in this analysis which
of the beta coefficient shows that the share price is less sensitive to the movement in the market p
reflects that the cigarette industry is less risky compared to the market.

Reynolds American Inc., refered to as RAI, is one of the largest tobacco company in the United Sta
three years, the company's financial leverage increased by 13% from 2013 to 2014 but then declin
to 2015. The significant increases in intangible assets and long term debt are the contributing facto
financial leverage ratio.

In regards to Reynolds American Inc.'s liquidity position, the company's current ratio deteriorated
then improved from 2014 to 2015. Although the current ratio did not reach the 2013 level, the incr
puts the company in a less riskier position based on their current liabilities. However, the company
that is measured by the quick ratio has decreased by 31%% from 0.75 to 0.52 in 2013 to 0.52 in 20
the company does not have enough liquid assets to cover their current liabilities at that time. Howe
bounced back by 42% in 2015 from 0.52 to 0.75.

In looking at the company's profitability performance, Reynolds American Inc.'s return on equity sli
from 2013 to 2014 by 2% while being followed by a significant drop of 45% from 2014 to 2015. The
is largely due to a 64% decline in efficiency measured by the Asset Turnover ratio.

The company has undergone changes in their long-term growth strategy to keep up with the transf
tobacco industry as consumer preference shifts towards a healthier alternative. The company has b
smoke-free growth platforms for the future, which is reflected on their financials with the material i
assets in 2015.

Reynolds American, Inc , RAI, stock has a positive correlation and relatively the same trend as the
return on RAI stock has been along the same lines and were generally moving the same amount
difference of approximately 1.25% in returns. The return on RAI stock has a low volatility from 2010
increased volatility in the year 2015, particularly on the month of July.

nc. (RAI) has been increasing despite the slow growth in

y the drop of oil prices which reflects that there is no
the continuous research on alternative cigarettes, the
products are forecasted.

nc. (RAI) was at 0.5177 which is less than 1. This means

mpared relative to the S&P 500. The RAI's stock is
he beta provided in the yahoo finance website is 0.6097
hat was used in this analysis which was 0.5177. The value
ve to the movement in the market prices. The beta also
e market.

tobacco company in the United States. Based on the past

% from 2013 to 2014 but then declined by 13% from 2014
term debt are the contributing factors for this fluctuating

ompany's current ratio deteriorated from 2013 to 2014 but

id not reach the 2013 level, the increase in current assets
nt liabilities. However, the company's short term liquidity
om 0.75 to 0.52 in 2013 to 0.52 in 2014. This means that
current liabilities at that time. However, the quick ratio

s American Inc.'s return on equity slightly deteriorated

drop of 45% from 2014 to 2015. The decrease in the ROE
sset Turnover ratio.

h strategy to keep up with the transformation in the

thier alternative. The company has been investing in
on their financials with the material increase in intangible

nd relatively the same trend as the index S&P 500. The

enerally moving the same amount and has an average
I stock has a low volatility from 2010 to 2014 and
h of July.

Name: Jaquelyn Miciano

Company: Reynolds American Inc.

RAI Price
over a Five-Year Horizon
45

41.50

40
35
30
25

Price per Month

20
15

11.27

10
5
0
7/6/2009

11/18/2010

4/1/2012

8/14/2013

12/27/2014

Five-year Horizon: September 2009 to August 2015

5/10/2016

41.50

12/27/2014

ugust 2015

5/10/2016

Name: Jaquelyn Miciano

Company: Reynolds American Inc.

Returns RAI vs S&P 500

20%
15%
10%

Returns per Month

5%
48 1.18%

0%
-5%
-10%
7/6/2009

48 -7.18%

11/18/2010

4/1/2012

8/14/2013

Five-year Horizon: September 2009 to Aug

RAI Return

S&P 500 Return

I vs S&P 500
2 14.91%

2 1.97%

14 -1.51%
14 -7.46%

1/2012

8/14/2013

12/27/2014

on: September 2009 to August 2015

S&P 500 Return

5/10/2016

Name: Jaquelyn Miciano

Company: Reynolds American Inc.

RAI Return
20%

15%

10%

f(x) = 0.5176977356x + 0.0179961522

5%

-10%

-5%

0%
0%
-5%

-10%

5%

10%

15%

10%

15%

Name: Jaquelyn Miciano

Company: Reynolds American Inc.

Dupont Decomposition

2013
2014
2015

ROE
NI/Equity
33.25%
32.51%
17.82%

NI/Sales
20.86%
17.35%
30.47%

DuPont Analysis
Sales/Assets Assets/Equity
53.47%
2.98
55.74%
3.36
20.06%
2.92

Current Assets/Current Liabilities

(Cash+Cash Equivalent+Short term Investments+Accounts Receivable)/Current Liabilities
3
Cash/Current Liabilities
1
2

Current Ratio
1.19
0.94
1.17

Liquidity
Quick Ratio2
0.75
0.52
0.74

s Receivable)/Current Liabilities

Cash Ratio3
0.49
0.27
0.49