ACCT 3371 Implementing the DuPont Method The Tableau Case Study

User Generated

lyvh99

Business Finance

ACCT 3371

ACCT

Description

Project Background

The learning objective of this module is to introduce you to data analytics which employers consistently tell us are important to new accountants. We will be using an EY-developed case, Implementing the DuPont Method, which I have edited for ACCT 3371.

A key purpose of financial statements is to provide useful information to decision makers, including investors. Investors can use the information contained in financial statements to better understand company performance so they can make better investment decisions. One introductory framework that has been especially useful in understanding company performance is the DuPont Method (sometimes called DuPont Analysis, DuPont Model or DuPont Framework).

To understand the DuPont Method, it helps to use an analytics mindset. For this case, we (1) define an analytics mindset, (2) discuss the history of and ratios involved in the DuPont Method and (3) use the DuPont Method to perform data analytics and data visualization techniques.

Project Details

For this case, you will implement an analytics mindset by comparing and contrasting different companies within different industries using the accounting ratios from the DuPont method. Your overall goal is to develop an investment recommendation for an investor.

The module has two parts:

  • In Part 1 of the case, you will gain an understanding of a few accounting ratios, which will help you to develop good questions about the companies you are analyzing in Tableau Part 2. Tableau is not needed for this portion of the module. Part 1 is an exercise and is only counted as a completion grade. Therefore, the grade is not used in any grade calculation. Although the grade is not counted, Tableau Part 1 is required. Consequently, if you do not complete it, you will not be eligible for a curve in this class.
  • In Part 2 you will load the data into Tableau, perform some simple tests to verify that you have loaded it correctly, analyze the data, develop an investment recommendation for your investor, and finally, leverage the power of data visualization to present the data so that it can be easily interpreted and understood by your investor.

Tableau Description

NewGenApp.com describes Tableau as data visualization software used for data science and business intelligence. Tableau can create a wide range of different visualization to interactively present the data and showcase insights. It comes with tools that allow to drill down data and see the impact in a visual format that can be easily understood. Tableau specializes in transforming boring tabulated data into eye-candy graphs and representations. You can easily import data into Tableau’s data engine from multiple sources and integrate them by combining multiple views in an interactive dashboard.


Step 1 14
Question 1 - total assets 3
Question 2 - count companies 3
Question 3 - companies per industry 3
Question 4 - net revenues per industry 5
Step 2 20
Calculate ROE 5
Calculate profit margin 5
Calculate asset turnover 5
Calculate financial leverage 5
Step 3 23
Question 1 - Median ROE 4
Question 2 - Median PMR 4
Question 3 - Median AT 4
Question 4 - Dashboard 3
Question 5 - Multiple viz on one sheet (2pts per ratio) 8
Step 4 24
Question 1 - student choice 6
Question 2 - student choice 6
Question 3 - student choice 6
Question 4 - student choice 6
Step 5 19
Story - opinion well presented and supported by 4 viz 19
Project Total 100

Unformatted Attachment Preview

Tableau Case Implementing the DuPont Method (For ACCT 3371 I have edited this EY-written case.) Background Information Background: A key purpose of financial statements is to provide useful information to decision makers, including investors. Investors can use the information contained in financial statements to better understand company performance so they can make better investment decisions. One introductory framework that has been especially useful in understanding company performance is the DuPont Method (sometimes called DuPont Analysis, DuPont Model or DuPont Framework). To understand the DuPont Method, it helps to use an analytics mindset. For this case, we (1) define an analytics mindset, (2) discuss the history of and ratios involved in the DuPont Method and (3) use the DuPont Method to perform data analytics and data visualization techniques. Implementing an analytics mindset Having and using an analytics mindset is critical in accounting and business. This case focuses on developing all aspects of your analytics mindset. As a review, an analytics mindset is the ability to: ► Ask the right questions. ► Extract, transform and load relevant data into a data analysis tool. ► Apply appropriate data analytic techniques. ► Interpret and share the results with stakeholders. History and model The DuPont Method has an interesting history. E. I. du Pont de Nemours and Company, or more frequently called DuPont, is the oldest stock in the current Dow Jones Industrial Index. Started in July 1802, the company originally focused on producing gunpowder. Today, the company makes chemicals which are in everything from food ingredients and dietary supplements to pharmaceuticals and fabrics. In addition to developing chemicals, the company has been a pioneer with respect to management accounting systems. The company developed the original accounting ratio of return on equity (ROE) and then in 1912, Donaldson Brown decomposed ROE into additional ratios. ROE measures a company’s profitability as a percentage of shareholder’s equity (i.e., how profitable a company can be using shareholders’ investments.) If ROE is unsatisfactory, the DuPont analysis can identify the aspect of the business that is underperforming. DuPont used this formula for managing its business. In 1914 DuPont invested in General Motors, and using the same basic management accounting formulas, led that company to become the world’s largest automobile company. In 1957, DuPont divested its ownership in General Motors because of antitrust laws. After having been highly useful for both General Motors and DuPont, the basic DuPont Method has been extended and used by many to understand investing and managing businesses. DuPont Formula The DuPont Method has evolved into the following formula: Return on equity = Profit margin ratio * asset turnover ratio * financial leverage ratio Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Return on equity: This represents the amount of net income that is generated for each dollar of shareholder’s equity. It can be interpreted as the amount of net income generated for each dollar of value that a shareholder owns of the company. This number can be either negative or positive. Profit margin ratio: This represents the amount of net income that is generated for each dollar of sales. It can be interpreted as the percentage of each dollar of sales that the company retains as earnings. Since net income can be negative, this ratio can be either negative or positive. Asset turnover ratio: This represents the amount of sales that is generated for each dollar of assets the company owns. This is often interpreted as the efficiency of the company—how many sales it can generate given the assets it owns. Except in very unusual circumstances, this ratio is positive. Financial leverage ratio: This represents the amount of assets that is financed by shareholders, as opposed to debt holders. Except in very unusual circumstances, this ratio is positive. Data In your data file, you have financial statement data for approximately 30 companies for each of six different industry groups (total sample size of almost 180 companies). The sheets contain modified financial statement information for fiscal years 2015-2017, inclusive. These companies range in size from some of the largest to the smallest in their respective industry groupings. For this case, you will not be using all data items. The items you are most likely to use are listed by the name they appear in the spreadsheet with a small explanation also provided. ► Industry: One of six industry groupings as defined by Nasdaq.com. 1 Industries included in the sample are capital goods, consumer services, finance, public utilities, technology, and transportation. ► Name: The name of the company for each line of data. ► Net income: The bottom line number on the income statement. This is the final net income number of the company for the fiscal year. ► Total Sales: The top line number on the income statement. This represents total revenues (less a few items that you can ignore for this case) earned by the company in the fiscal year. ► Ticker: The code used to identify each company on the NASDAQ stock exchange. Each company has their own unique ticker symbol. ► Total assets: The total assets of a company at the end of the fiscal year. This number appears on the balance sheet. ► Total shareholder equity: The total shareholder equity of a company at the end of the fiscal year. This number appears on the balance sheet and also can be called stockholder’s equity. ► Year: The fiscal year being reported on the financial statements. For example, a year of 2015, means the balance sheet of the company is as of the last day of their fiscal year in 2015 (usually December 31st) and the income statement for all transactions that occurred during the fiscal year. 1 See http://www.nasdaq.com/screening/companies-by-industry.aspx for industry groupings. Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Tableau Download Instructions We will use Tableau Desktop in this class, not Tableau Prep. You only need to download and install Tableau Desktop. Tableau Desktop runs on both Windows and Mac computers. 1. Go to https://www.tableau.com/tft/activation. Click on Download Tableau Desktop. 2. When prompted, enter your UH email address for Business E-mail and enter University of Houston for Organization. Click Download Free Trial. 3. Install the Tableau Desktop software and complete the registration. • Enter University of Houston for organization • Enter accounting, finance or something similar for department • Enter student or analyst for job role • Enter state, country zip and phone number • Click “Activate Tableau” at the top of the screen. 4. Activate with your product key: TCN6-3034-E510-3929-F5D0. If you clicked Trial instead of Activate Tableau, open Tableau and follow the menu path Help > Manage Product Keys > Activate Information from Tableau: Students can continue using Tableau after the class is over by individually requesting their own one-year license through the Tableau for Students program. Tableau Download Instructions We will use Tableau Desktop in this class, not Tableau Prep. You only need to download and install Tableau Desktop. Tableau Desktop runs on both Windows and Mac computers. 1. Go to https://www.tableau.com/tft/activation. Click on Download Tableau Desktop. 2. When prompted, enter your UH email address for Business E-mail and enter University of Houston for Organization. Click Download Free Trial. 3. Install the Tableau Desktop software and complete the registration. • Enter University of Houston for organization • Enter accounting, finance or something similar for department • Enter student or analyst for job role • Enter state, country zip and phone number • Click “Activate Tableau” at the top of the screen. 4. Activate with your product key: TCN6-3034-E510-3929-F5D0. If you clicked Trial instead of Activate Tableau, open Tableau and follow the menu path Help > Manage Product Keys > Activate Information from Tableau: Students can continue using Tableau after the class is over by individually requesting their own one-year license through the Tableau for Students program. Tableau Case Implementing the DuPont Method (For ACCT 3371 I have edited this EY-written case.) Background Information Background: A key purpose of financial statements is to provide useful information to decision makers, including investors. Investors can use the information contained in financial statements to better understand company performance so they can make better investment decisions. One introductory framework that has been especially useful in understanding company performance is the DuPont Method (sometimes called DuPont Analysis, DuPont Model or DuPont Framework). To understand the DuPont Method, it helps to use an analytics mindset. For this case, we (1) define an analytics mindset, (2) discuss the history of and ratios involved in the DuPont Method and (3) use the DuPont Method to perform data analytics and data visualization techniques. Implementing an analytics mindset Having and using an analytics mindset is critical in accounting and business. This case focuses on developing all aspects of your analytics mindset. As a review, an analytics mindset is the ability to: ► Ask the right questions. ► Extract, transform and load relevant data into a data analysis tool. ► Apply appropriate data analytic techniques. ► Interpret and share the results with stakeholders. History and model The DuPont Method has an interesting history. E. I. du Pont de Nemours and Company, or more frequently called DuPont, is the oldest stock in the current Dow Jones Industrial Index. Started in July 1802, the company originally focused on producing gunpowder. Today, the company makes chemicals which are in everything from food ingredients and dietary supplements to pharmaceuticals and fabrics. In addition to developing chemicals, the company has been a pioneer with respect to management accounting systems. The company developed the original accounting ratio of return on equity (ROE) and then in 1912, Donaldson Brown decomposed ROE into additional ratios. ROE measures a company’s profitability as a percentage of shareholder’s equity (i.e., how profitable a company can be using shareholders’ investments.) If ROE is unsatisfactory, the DuPont analysis can identify the aspect of the business that is underperforming. DuPont used this formula for managing its business. In 1914 DuPont invested in General Motors, and using the same basic management accounting formulas, led that company to become the world’s largest automobile company. In 1957, DuPont divested its ownership in General Motors because of antitrust laws. After having been highly useful for both General Motors and DuPont, the basic DuPont Method has been extended and used by many to understand investing and managing businesses. DuPont Formula The DuPont Method has evolved into the following formula: Return on equity = Profit margin ratio * asset turnover ratio * financial leverage ratio Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Return on equity: This represents the amount of net income that is generated for each dollar of shareholder’s equity. It can be interpreted as the amount of net income generated for each dollar of value that a shareholder owns of the company. This number can be either negative or positive. Profit margin ratio: This represents the amount of net income that is generated for each dollar of sales. It can be interpreted as the percentage of each dollar of sales that the company retains as earnings. Since net income can be negative, this ratio can be either negative or positive. Asset turnover ratio: This represents the amount of sales that is generated for each dollar of assets the company owns. This is often interpreted as the efficiency of the company—how many sales it can generate given the assets it owns. Except in very unusual circumstances, this ratio is positive. Financial leverage ratio: This represents the amount of assets that is financed by shareholders, as opposed to debt holders. Except in very unusual circumstances, this ratio is positive. Data In your data file, you have financial statement data for approximately 30 companies for each of six different industry groups (total sample size of almost 180 companies). The sheets contain modified financial statement information for fiscal years 2015-2017, inclusive. These companies range in size from some of the largest to the smallest in their respective industry groupings. For this case, you will not be using all data items. The items you are most likely to use are listed by the name they appear in the spreadsheet with a small explanation also provided. ► Industry: One of six industry groupings as defined by Nasdaq.com. 1 Industries included in the sample are capital goods, consumer services, finance, public utilities, technology, and transportation. ► Name: The name of the company for each line of data. ► Net income: The bottom line number on the income statement. This is the final net income number of the company for the fiscal year. ► Total Sales: The top line number on the income statement. This represents total revenues (less a few items that you can ignore for this case) earned by the company in the fiscal year. ► Ticker: The code used to identify each company on the NASDAQ stock exchange. Each company has their own unique ticker symbol. ► Total assets: The total assets of a company at the end of the fiscal year. This number appears on the balance sheet. ► Total shareholder equity: The total shareholder equity of a company at the end of the fiscal year. This number appears on the balance sheet and also can be called stockholder’s equity. ► Year: The fiscal year being reported on the financial statements. For example, a year of 2015, means the balance sheet of the company is as of the last day of their fiscal year in 2015 (usually December 31st) and the income statement for all transactions that occurred during the fiscal year. 1 See http://www.nasdaq.com/screening/companies-by-industry.aspx for industry groupings. Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Tableau Download Instructions We will use Tableau Desktop in this class, not Tableau Prep. You only need to download and install Tableau Desktop. Tableau Desktop runs on both Windows and Mac computers. 1. Go to https://www.tableau.com/tft/activation. Click on Download Tableau Desktop. 2. When prompted, enter your UH email address for Business E-mail and enter University of Houston for Organization. Click Download Free Trial. 3. Install the Tableau Desktop software and complete the registration. • Enter University of Houston for organization • Enter accounting, finance or something similar for department • Enter student or analyst for job role • Enter state, country zip and phone number • Click “Activate Tableau” at the top of the screen. 4. Activate with your product key: TCN6-3034-E510-3929-F5D0. If you clicked Trial instead of Activate Tableau, open Tableau and follow the menu path Help > Manage Product Keys > Activate Information from Tableau: Students can continue using Tableau after the class is over by individually requesting their own one-year license through the Tableau for Students program. Tableau Reference Guide Contents Connect to Your Source Excel Data – Join............................................................................................... 2 Introduction to Tableau Workspace .......................................................................................................... 4 Total a Single Data Measure ..................................................................................................................... 5 “Show Me” Button is Missing .................................................................................................................. 5 Count the Entries in a Dimension ............................................................................................................. 5 Count Entries in a Dimension based on a Second Dimension .................................................................. 6 Show Captions for a Worksheet................................................................................................................ 6 Sum/Average a Measure based on a Dimension ....................................................................................... 7 Add Color to a Visualization .................................................................................................................... 7 Move a Color Legend ............................................................................................................................... 8 Sorting Data .............................................................................................................................................. 9 Change the Type of Visualization............................................................................................................. 9 Resize a Visualization ............................................................................................................................... 9 Labels are Not Showing for All Bars ...................................................................................................... 10 Create a Calculated Field ........................................................................................................................ 10 Create a Calculated Field to RANK Items .............................................................................................. 11 Show Multiple Graphs on One Visualization ......................................................................................... 11 Add a Filter to any Visualization ............................................................................................................ 12 Set Default Measure Format ................................................................................................................... 14 Format Numbers on an Axis or in a Pane ............................................................................................... 15 Create a Dashboard ................................................................................................................................. 15 Create a Story.......................................................................................................................................... 16 Increase size of Caption Box on Story Point .......................................................................................... 17 Save your file as a Tableau Package ....................................................................................................... 18 1 Connect to Your Source Excel Data – Join Use a join when you need to connect two data files that have different fields and you want to combine them into one large dataset. For example, a master file and a transaction file. You must specify which field will be used to perform the join (i.e. how you will connect the two files). Step 1 Start Tableau. If the Connect window does not appear, go to Data Source tab at the bottom of the screen. Under Connect, select a file or database type and browse to find the file. Step 2 Drag the first dataset to the workspace on the right of the screen. Specify Live (provides real-time updates as source data changes) or Extract (snapshot of the data, no updates of source data changes) as needed. Step 3 Tableau has several ways to connect dataset, relationships, joins, unions. When you complete your homework, you need to use a join and not a relationship. To create a join instead of a relationship, double-click on the first table. There will be a blue line on the left side of the first table box. Drag the second dataset to the right of the first table and a Venn diagram will appear. If the files are large, this could take some time, so be patient. If you have a red triangle or a plain line between your two tables instead of a Venn diagram, then you are incorrectly using a relationship. To correct the problem, remove the second table. Click the drop down arrow in the right side of the second table box and select Remove. 2 Step 4 To edit the basic join to fit your data analysis needs, click on the Venn diagram. Remember you can have multiple join clauses. For example, you may need to join on both order ID and region. To add another join clause, click “Add new join clause” and pick the relevant field in both data sources. You then select the join type. Join Type Inner Result When you use an inner join to combine tables, the result is a table that contains values that have matches in both tables. Left When you use a left join to combine tables, the result is a table that contains all values from the left table and corresponding matches from the right table. When a value in the left table doesn't have a corresponding match in the right table, you see a null value in the data grid. Right When you use a right join to combine tables, the result is a table that contains all values from the right table and corresponding matches from the left table. When a value in the right table doesn't have a corresponding match in the left table, you see a null value in the data grid. Full outer When you use a full outer join to combine tables, the result is a table that contains all values from both tables. When a value from either table doesn't have a match with the other table, you see a null value in the data grid. 3 Description Introduction to Tableau Workspace Now that you have your data, you are ready to begin building visualizations. Each visualization is a separate sheet which looks a little like a blank pivot table in Excel. Here are some key terms • Sheet: A sheet is a singular chart or map in Tableau. • Workbook: A workbook is the entire Tableau file containing your sheets, stories and dashboards. • Measure: A variable from the data on which math can be performed (sum, average, and so on). Measures are often continuous data. Examples include GPA, sales, quantity, quota, height, and salary. • Dimension: A categorical variable from the dataset that is used to slice and dice the data into different categories. Dimensions are often discrete data. Examples include country, gender, student ID, and name. • Filter: A filter is used to limit what data is being displayed on the sheet. Visible controls for a filter on a sheet or dashboard are called Quick Filters. • Tooltip: Tooltips are text boxes that appear when hovering over a mark on a sheet in order to give more information. The text and text formatting in them are easily edited through the Marks card. • Marks card: The Marks card is the tool used to create a sheet that controls most of the visual elements in a sheet. Using the Marks card, you can switch between different chart types (bar, line, symbol, filled map, and so), change colors and sizes, add labels, change the level of detail, and edit the tool tips. • Rows and Columns Shelves: The Rows shelf and the Columns shelf is where you determine which variables will go on what axis. Put data you want displayed along the X-axis on the Columns shelf and data you want displayed on the Y-axis on the Rows shelf. • Dashboard: A dashboard is a canvas for displaying multiple sheets at a time and allowing them to interact with each other. 4 Total a Single Data Measure Step 1 Go to a new sheet. Drag the measure to data portion of the sheet. “Show Me” Button is Missing Step 1 The Show Me” button should appear in the upper right side of the screen. If it is missing, press CNTRL-1 (control and one). Count the Entries in a Dimension Step 1 Go to a new sheet. Drag the dimension to row tray of the sheet. Step 2 Click the drop down menu on the right side of the name. Click on Measure and then select the appropriate count function. COUNT will count all entries. COUNT(DISTINCT) will count unique entries. 5 Step 3 Click on Label in the Marks card to display the count number. Click in the Show Marks Label square. Count Entries in a Dimension based on a Second Dimension Step 1 For example, if you want to count customers by region, drag the first dimension to the row tray and the second to the column tray. Step 2 Click the drop down menu on the right side of the name. Click on Measure and then select the appropriate count function. COUNT will count all entries. COUNT(DISTINCT) will count unique entries. Step 3 Click on Label in the Marks card to display the count number. Click in the Show Marks Label square. Show Captions for a Worksheet Step 1 Menu Path: Worksheet>Show Caption. Step 2 The caption will appear below the viz. Click the caption box and drag it to below the column and row shelves. 6 Sum/Average a Measure based on a Dimension Step 1 For example, if you want to sum profit by region, drag the dimension to the row or column tray and the measure to the other tray. Step 2 Click the drop down menu on the right side of the name. Click on Measure and then select the appropriate function. Step 3 Click on Label in the Marks card to display the count number. Click in the Show Marks Label square. Add Color to a Visualization Step 1 After creating the basic visualization, drag the item you want to color to the Color button on the Marks shelf. 7 Move a Color Legend Step 1 By default Tableau puts the color legend in the upper right corner of the screen which is not always convenient. You can move it to another part of the screen by clicking on the top of the legend and dragging it to a new location. Before: After: 8 Sorting Data Step 1 Place the cursor over the axis on which you wish to sort the data. A Sort Icon will appear Step 2 Click the sort icon that appears. One click sorts the data in ascending order. Two clicks sorts it in descending order. Three clicks clears the sort. Change the Type of Visualization Step 1 After creating the basic visualization, click the Show Me button on the far right side of the screen to see different visualization ideas. You will see the name of the visualization at the bottom of the pop-up menu. Resize a Visualization Step 1 Place the cursor over the axis on which you wish to resize the visualization. Brackets will appear on both ends of the axis. 9 Step 2 Place the cursor on the right side bracket and drag to the left. Labels are Not Showing for All Bars Step 1 If the visualization does not show all row labels, expand the height of the chart by putting cursor on the x-axis, click and drag down to increase the height until the labels appear. Before: After: Create a Calculated Field Step 1 Menu Path Analysis>Create Calculated Field. Step 2 Enter the name of the new field in the top box. Step 3 Start typing the formula below the line and the field names from the source data will appear. Double click to select the field. Tableau will place brackets around the field names. The calculated field should appear in the Measures area on the lower left of the screen with a small equal sign in front of the name. 10 Create a Calculated Field to RANK Items Step 1 Create a calculated field as described above Step 2 Use the Tableau function RANK RANK(expression, ['asc' | 'desc']) Desc = largest is ranked “1” ASC = smalled is ranked “1” You can then filter on RankByProfit. For example Rank Save as. Step 2 Choose “Tableau Packaged Workbook” from the “Save as Type” drop down menu. 18 Tableau Case – Fall 2020 Implementing the DuPont Method (For ACCT 3371 I have edited this EY-written case.) Part 2 - Creating and Reporting Analytics Extract, transform and load the data (the ETL process) The data for this case was extracted from company financial statements posted online from credible sources, and has been loaded into the Excel file. You can assume that the web scrapper accurately and completely extracted the information and loaded it into Excel. In this part of the case, you will be verifying your data loaded successfully into Tableau. Realize for many situations, extracting, transforming, and loading (ETL) the data can account for over 80 percent of the time in the entire data analysis process. This case simplifies this process so you can focus on developing other aspects of an analytics mindset. Hint: Read the Tableau Reference Guide on Blackboard for help completing this assignment. Step 1 – Load and Verify Source Data Acquire Data Create a folder for your Tableau assignment on your computer or USB drive. If you move between computers, you will need to move your Tableau folder and all the files it contains. Download the source data TableauCaseFile_Fall20.xls spreadsheet from Blackboard and move it to your Tableau folder. Load Data Import the data into Tableau. (Hint: when loading the data into Tableau, you need data from both the income statement and the balance sheet tabs. Make sure that you link the income and balance sheet data correctly by matching the two spreadsheets on both ticker symbol and year on the Data Source tab.) Name your Tableau file “Tableau” - my filename would be TableauMilesCarolyn. Save it in the Tableau folder you created. Verify Data When you are finished loading the data, answer these simple questions to make sure you loaded the data correctly. You need to show the answers to these questions by creating visualizations (viz) in Tableau. Each viz will be a separate worksheet tab in Tableau. So we can easily grade your work, name each worksheet S1-Q1, S1- Q2, etc. and ensure “Show Captions” is activated for each worksheet. I have provided check figures, so you can verify your viz are correct. Show all numbers on the viz. 1. What are the combined total assets of all companies for all years? (58,026,172,447,200) 2. How many different companies are included in the dataset? (173 companies) 3. How many different companies are in each industry? Capital goods (29 companies) Public utilities (29 companies) Consumer services (28 companies) Technology (29 companies) Finance (29 companies) Transportation (29 companies) 4. What companies had over $10,000,000,000 in net income for 2019? The viz should be a bar graph and only show the (13) companies meeting this criterion in your viz. Include company name and net income Sort by highest to lowest in net income. Use color to differentiate industries. Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Apply appropriate data analytic techniques You are now ready to analyze the data. You will be required to do some data transformation to analyze the data (e.g., you will need to compute the ratios involved in the DuPont Method). Step 2 - Create Calculated Fields Create calculated fields for: • return on equity • profit margin ratio • • asset turnover ratio financial leverage ratio The formulas and field names are in the Case Background. (No Tableau sheets are created when calculating fields.) Formatting for all Viz in Steps 3-5 Return on equity and profit margin ratio should be formatted as percentages. Percentages should have two decimal places in the sheet and zero decimal places on the axis as shown below. Asset turnover and financial leverage should be shown as normal numbers with two decimals points in the sheet and one decimal point on the axis. Financial numbers (total assets, net income, etc.) should be shown as normal numbers with zero decimals in the sheet and currency with zero decimal places on the axis. Change the display units as appropriate thousands (k), millions (m), billions (b) etc. Too many zeros can be distracting to readers. Use data labels to convey detailed information as shown in step 3. Ensure “Show Captions” is activated for each worksheet, but do not modify the viz caption. Use color to enhance visual appeal. Keep in mind that it is extremely rare to total or sum a ratio, so normally you will use median, max, min or one of the count functions to analyze your ratio data. Step 3 - Questions about Industries Label your Tableau sheets S3-Q1, S3-Q2, etc. Q1-Q3 should all look like the one below. 1. What is the median return on equity for each industry? Sort by industry as shown above. 2. What is the median profit margin ratio for each industry? Sort by industry as shown above. 3. What is the median asset turnover ratio for each industry? Sort by industry as shown above. 4. Create a dashboard using the three viz you just created in step 3 above. Make sure your dashboard is visually appealing and there are no scroll bars on the viz. 5. Sometimes it is best to create one viz showing multiple graphs. Create a viz with industry as the columns, and the median of all four ratios as the rows. Color industry and label data points. This will show information similar to question 4, but in a different format. Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Step 4 - Questions about Companies You need to present a proposal to your investor on which individual company stock to purchase. Think about what information you would want to know if someone asked you to invest money. What four things would someone need to show you or say to you to get your investment dollars? Use the viz you have already created to focus your investment proposal ideas. You need to create at least four additional viz to help your investor and label them S4-Q1, S4-Q2, etc. The viz must use different graph types (i.e. You may have only one bar graph). You must use the viz you create in your report to your investor. Resorting or slightly modifying a viz from a previous step does not count as one of the four required viz. Make sure your graph type is appropriate for the data you are showing by referring to the Chart Suggestion document. I have suggested some viz below, but feel free to create your own. • Compare your company on any ratio or financial measure to its industry or companies of similar size in other industries. Use color to emphasize your company on the viz. Don’t use “highlight” since it ends when the viz is touched. • What companies have the best ROE or other ratio within each industry for a single year or all three years? (Hint: For this analysis, each company needs to be grouped within its industry and ordered by rank so that the highest return on equity appears on the top. You can add filters if needed.) • Which company has seen the greatest improvement in median ROE or other ratio or measure during the three years included in this case? • What company had the most net income for a single year or all three years and what was the total amount of those sales? (Hint: For this analysis, total net income needs to be summed for each company and ordered by rank so that the highest grossing company appears on the top. You can add filters if needed.) • Perform a similar analysis as the one above for total profit or other financial measure for a single year or all three years. (Note: you cannot sum a balance sheet account across years.) Filtering You need to filter your viz, so they fit on approximately one screen (max 20 companies). • You cannot use the same filtering method for all your viz (i.e. Top 20). • You should filter by industry, year, ratio value and/or another measurement or dimension. • When filtering, use “at least” or “at most” if possible. Only use “range” when you are filtering a range with upper and lower bounds. If you use a range, you must explain in your story why you used a it • You can use more than one filter per viz to really highlight your company. • None of your viz should show data for every company individually. If you filter on company, please follow the following guidelines: • You CAN put customer name in the filter box and then use the TOP tab to filter on another field. There is an example of this method in the Tableau Reference Guide on Blackboard. • You CANNOT put customer name in the filter box and then use the GENERAL tab to Select from List unless you are filtering on just your company. Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Report results of data analytic techniques Step 5 - Report to Investor You need to present your findings and give your opinion to your investor on which individual company stock to purchase. You need to create one Tableau Story containing at least four story points supporting your opinion. Name the tab “My Investment Recommendation”. You may include additional viz to help you tell your story. All of the viz from Step 4 must be included. If you need a viz similar to one from Steps 1-3, create a duplicate and modify the duplicate. (Don’t directly modify a viz you created in steps 1-3 or you will lose points on steps 1-3.) Be sure you clearly state your opinion – “In my opinion…”. Since this is your opinion, there is no right or wrong answer on what the investor should purchase, but your viz must support your opinion. You will be graded on how well you support your opinion with your viz, so add a caption to each story point to guide the reader on how the viz supports your opinion. Your captions should be two to three sentences. You must tell a story! Why does the viz you are presenting encourage the investor to follow your advice? Be persuasive. The caption should not just describe the viz, but explain why the data presented is relevant to the investment decision. Ensure each of your caption boxes stretches the width of the screen for readability. You can also drag down the bottom of caption box if your caption does not fit in the box. Do not use text boxes for your captions. (This is not a finance class, so don’t stress over the opinion part. Choose a logical opinion and defend it using at least four viz.) Step 6 - Submit your Assignment Ensure “Show Captions” is activated for each worksheet. Save your Tableau file as a Tableau Package by following the menu path: File>Save As> Choose “Tableau Packaged Workbook” from the “Save as Type” drop down menu. Upload your Tableau Package to Blackboard on the Software Modules>Tableau Module Folder page before the due date. The item name is “Tableau Submission - Attach file here”. Verify the file extension is .twbx before uploading! Analytics mindset case studies – DuPont © 2016 Ernst & Young Foundation (US). All Rights Reserved. SCORE No. 02050-161US Tableau Part 2 Checklist All Visualizations  All tabs named correctly  Numbers in all viz formatted correctly (percent, decimal, etc) o Axis o Pane  Color used to improve readability  Data values are labeled  All label marks are visible  “Show Captions” is activated Step 4 Visualizations  Data sorted to highlight your company  Variety of filters used  Your company is on all viz and easy to locate  Variety of graph types used  Appropriate summarization used (sum, count, median, average, etc.)  Graph type is appropriate for the data shown.  “Highlight” is not used since it disappears when the viz is clicked Story  Do your viz support your story?  Do you use some of the DuPont ratios in your story?  Do you analyze something other than just the DuPont ratios?  Does your caption match your viz?  Do you have one investment recommendation?  Are all your story points in one story?  Did you check your spelling and grammar?  Are your captions page-width wide?  Did you drag down the bottom of your caption boxes so all rows can be read?
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

At...


Anonymous
I use Studypool every time I need help studying, and it never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags