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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.
NTPC and________ have entered into an agreement to explore collaborations in the areas of renewable energy, production of green hydrogen and its deriv...
‘Androth’, the second of 08 x ASW Shallow Water Craft (SWC) Project, built by M/s GRSE for Indian Navy was launched on which port city?
Which company collaborates with the National Education Society for Tribal Students (NESTS) to roll out the plan Future Engineers?
Why was Rahaab Allana bestowed with the insignia of Officier dans l'Ordre des Arts et des Lettres by the French government?
According to a Reuters poll of economists, what was the expected consumer price inflation (CPI) for August 2024?
Which book provides a comprehensive analysis of the individuals who served as the chief of the Reserve Bank of India?
What recent (April 2024) announcement did the National Stock Exchange (NSE) make regarding derivatives contracts?
What is the purpose of SpaceX launching its satellite internet service, Starlink, in Mongolia?
“It’s Fun Banking” is the tagline of which of the following small finance banks?
Which of the following statements about Nokia and IISc partnership on 6G tech is/are correct?
1.Nokia has partnered with IISc to research 6G tech...