Dupont analysis helps to identify the source of a company’s return. It gives an expanded form of the RoE of the company by breaking down the RoE into three ratios related to profitability (net profit margin), operational efficiency (total asset turnover), and financial leverage (equity multiplier). Thus, it’s helpful in analyzing the reason for the profitability of a company. As per DuPont analysis, RoE = Net profit margin * asset turnover * financial leverage Financial Leverage = Assets/Shareholders’ Equity It is possible for a company with terrible sales and margin to take on excessive debt and artificially increase its return on equity. The equity multiplier allows the investors to see what proportion of return on equity is of debt.
Which Indian actor was appointed as Thailand's Brand Ambassador and Honorary Tourism Advisor?
Which telecom company has launched its ‘India 6G’ program with the formation of an India 6G Research team in its Chennai R&D Center?
Who is the author of the book “On Board My Years in BCCI”?
RBI has approved the merger of fintech startup Slice with which bank?
The country has registered its highest-ever FDI inflows of $84.84 billion in which of the following FY?
Which one of the following schemes is aimed at all-round development of adolescent girls in the age group of 11-18 years and making them self-reliant?
What is the primary objective of the Meri Maati, Mera Desh campaign launched by the Union government as part of the Azadi Ka Amrit Mahotsav celebration?...
which state has recently announced the formation of an expert committee to examine ways for the implementation of a uniform civil code?
A newly launched product Activ One features ‘100 per cent Health Returns’, which enable policyholders to earn back their premium up to 100 per cent ...
India’s second highest civilian award The Padma Vibhushan has been conferred to whom for the public affairs category?