The document discusses the DuPont analysis method for calculating return on equity (ROE) using the DuPont equation. The DuPont equation breaks down ROE into three factors: profitability, measured by net income divided by sales; efficiency, measured by sales divided by assets; and leverage, measured by assets divided by equity. By analyzing each factor, a company can determine how to improve its overall ROE.
The document discusses the DuPont analysis method for calculating return on equity (ROE) using the DuPont equation. The DuPont equation breaks down ROE into three factors: profitability, measured by net income divided by sales; efficiency, measured by sales divided by assets; and leverage, measured by assets divided by equity. By analyzing each factor, a company can determine how to improve its overall ROE.
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The document discusses the DuPont analysis method for calculating return on equity (ROE) using the DuPont equation. The DuPont equation breaks down ROE into three factors: profitability, measured by net income divided by sales; efficiency, measured by sales divided by assets; and leverage, measured by assets divided by equity. By analyzing each factor, a company can determine how to improve its overall ROE.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd