Question

Use your own words to explain DuPont Analysis

Use your own words to explain DuPont Analysis

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
DuPont Analysis is developed by DuPont corporation in 1920 for the assessment of the company’s profitability. The equation for the basic DuPont model is ROE = Profit margin × Asset Turnover × Financial Leverage. Profit margin = Net income/ Net Sales , Asset Turnover = Net Sales / Total Assets and Financial Leverage = Total Assets/ Total Shareholders' Equity.
The DuPont analysis uses both the income statement as well as the balance sheet to perform the examination.Profit margin measures operational efficiency, Asset turnover measures the efficiency of asset utilisation and Financial Leverage shows how much leverage is being used.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
explain in your own words how the fallacy is revealed through analysis
explain in your own words how the fallacy is revealed through analysis
Explain the terms in your own words. Use a maximum of 80 words per answer. (1)...
Explain the terms in your own words. Use a maximum of 80 words per answer. (1) Life-cycle cost
# Draw pictures and use your own words to explain the processes of inserting and deleting...
# Draw pictures and use your own words to explain the processes of inserting and deleting a node in a linked list.
In your own words, explain the three dimensional, time-independent Schrödinger equation. In your own words, describe...
In your own words, explain the three dimensional, time-independent Schrödinger equation. In your own words, describe the atomic structure of hydrogen atom. In your own words, explain nuclear binding energy and structure. In your own words, explain nuclear reactions, nuclear fission and nuclear fusion. please type it do not write it please
Q1 Answer the following : A) In your own words explain what a drive surface is...
Q1 Answer the following : A) In your own words explain what a drive surface is in Mastercam 2018. Use screen clips to help explain your answer. B) In your own words explain what a containment surface is in Mastercam 2018. Use screen clips to help explain your answer. C) In your own words explain what a containment boundary is in Mastercam 2018. Use screen clips to help explain your answer. D) In your own words explain what a drip...
use your own words and phrases explain the differences between audit and assurance with examples.
use your own words and phrases explain the differences between audit and assurance with examples.
Explain in your own words and example of how a business could use the Time Value...
Explain in your own words and example of how a business could use the Time Value of Money concepts we covered this week.
Acetyl-CoA is referred to as the cell's "metabolic funnel”. Please use your own words and explain...
Acetyl-CoA is referred to as the cell's "metabolic funnel”. Please use your own words and explain this in detail. Thanks!
Use your own words to explain them: Financial statements are an important window on reality. Profits...
Use your own words to explain them: Financial statements are an important window on reality. Profits do not equal cash flow.
In your own words, explain via the use of examples, the following commercial bank risks as...
In your own words, explain via the use of examples, the following commercial bank risks as well as their impact on commercial banking activities: (i) Market risk; and (ii) Operational risk
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT