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Dawson

The financial statements and balance sheet of Dawson Stores, Inc provide valuable information about the company’s past financial performance. However, they rarely provide enough information to conclude weather the company is a good credit risk or not. Nevertheles, it rather provides clues about aspects of the firms operations which we need to examine more closely. Financial ratios are used to extend our understanding of the financial statement of Dawson Stores.Inc.
PROFITABILITY MEASURES
The ROE ratio declines between 1980 and 1981. At a first glance this may seem as an unhealthy tendency, however, The ROE ratio has a substantial growth between 1981 and
1983.ROI with financial leverage is increasing between 1981 and 1983 too which means that the business had started being more effective on putting its assets to work. The ratio would be more useful if the business performance is compared to industry’s norms...

Posted by: Sandeep Jador

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