Financial Analysis
Using a Dupont analysis, ROE has been increasing across time, driven mainly by net profit margin expansion. Net profit margin expansion was driven mainly by operating margin expansion and partly by lower tax rates. Leverage is nil because no debt is employed. Asset turnover fell largely because of increased holding of cash.
Growth in 2009 has been propelled by a sharp increase in margins. One suspect if it is sustainable, though it is hard to establish a conclusion either ways without additional information.
Using a Dupont analysis, ROE has been increasing across time, driven mainly by net profit margin expansion. Net profit margin expansion was driven mainly by operating margin expansion and partly by lower tax rates. Leverage is nil because no debt is employed. Asset turnover fell largely because of increased holding of cash.
Growth in 2009 has been propelled by a sharp increase in margins. One suspect if it is sustainable, though it is hard to establish a conclusion either ways without additional information.
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