Start learning 50% faster. Sign in now
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.
Indian Institute of Sugarcane Research is located in?
Which premium banking service has YES Bank introduced to cater to affluent and elite customers?
Which of the following is considered a good indicator of economic growth?
What was the ranking of India in the International Astronomy & Astrophysics Olympiad?
Which country extended a state of emergency recently as some people were killed in devastating forest fires in the country?
Which European financial regulatory body revoked CCIL’s recognition?
What was the first cyclone to form over the Kutch coast in Gujarat in August 2024?
Who graced the occasion as the Chief Guest at the Indian Air Force's display of firepower at the Pokhran range near Jaisalmer on 17 February 2...
Which branch of the government is responsible for implementing laws?
Who has been the new President of Albania?