Question

perform DuPont analysis on NEM stock (newmont mining corp holding co) for the last 3 years...

perform DuPont analysis on NEM stock (newmont mining corp holding co) for the last 3 years .how has ROE changed over this period?

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Answer #1
2016 2015 2014
Net Income -627,000 220,000 508,000
Sales 6,711,000 6,085,000 6,819,000
Assets 21,031,000 25,130,000 24,916,000
Equity 10,721,000 11,350,000 10,274,000
ROE -5.85% 1.94% 4.94%
NPM -9.34% 3.62% 7.45%
AT 0.319 0.242 0.274
EM 1.962 2.214 2.425

DuPont Analysis:

ROE = Net Income / Equity = (Net Income / Sales) x (Sales / Assets) x (Assets / Equity)

= (Net Profit Margin) x (Asset Turnover) x (Equity Multiplier)

The ROE for NEM has declined and become negative last year due to poor profitability.  

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