DuPont framework data for four industries are presented below. For the four industries, compute: 1. Return on
Question:
DuPont framework data for four industries are presented below.
For the four industries, compute:
1. Return on assets
2. Return onequity
Transcribed Image Text:
Assets-to- Asset Turnover Equity Ratio Return on Sales Retail jewelry stores. Retail grocery stores Electric service companies Legal services firms 1.578 1.832 2.592 0.050 0.014 0.069 0.083 1.529 5.556 0.498 3.534 1.708
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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