15.00%
15.50%
16.00%
16.50%
17.00%
17.50%
18.00%
2011
2012
2013
ROE
ROE
Formula
ROA = Net income to common shareholders / Average total common equity f ROA (Return on Assets) Analysis:
ROA is an indicator of profitability of a company. It has dipped in 2013 but has been relatively in the range of 8.2-8.3 % for 2012 & 2011. The dip is a result of decrease in net income. It should also be noted that the effective tax rate has consistently increased over the last 3 years and the average total assets for 2012-2013 is slightly higher than the 2011-2012 period.
Efficiency Ratios
ROIC (Return on Invested Capital) Analysis:
ROIC is a measure of return in capital invested by bondholders & shareholders. ROIC has declined from the previous year due…show more content… The Danone group’s origins date back to 1966 when the French glass manufacturers, Glaces de Boussois and Verrerie Souchon Neuvesel, merged to form Boussois Souchon Neuvesel, or BSN. In 1970, BSN began a program of diversification in the food and beverage industry by acquiring successively Brasseries Kronenbourg, Société Européenne de Brasseries and Société Anonyme des Eaux Minérales d’E vian, which were, at the time, major customers of its glass containers activity. These acquisitions made BSN France’s market leader in beer, bottled water, and baby food. In 1973, BSN merged with Gervais Danone, a French food and beverage group specialized in dairy and pasta products, becoming the largest food and beverage group in France, with consolidated sales of around €1.4 billion, 52% out of which in food and beverage. The firm’s product lines in F&B were split as follows:
• Fresh Dairy Products Division (yogurts, fermented dairy products and other specialties of fresh dairy products) accounted for 56% of Group sales in 2013;
• Waters Division (packaged natural, flavored and vitamin-enriched water) represented 18% of Group sales in