PFB the simple DuPont analysis of Hindustan Unilever Limited. and ITC Ltd. for a period of three years.

HUL Ltd.			ITC Ltd
2019	2020	2021	2019	2020	2021
Net profit margin	15.44%	16.03%	17.61%	27.88%	28.05%	33.53%
Asset Turnover	2.19	2.14	2.32	0.71	0.64	0.59
Leverage	2.33	2.44	1.43	1.21	1.20	1.17
ROE (NPM*AT*LEV)	78.78%	83.70	58.42%	24.10	21.85	23.63

From the above data comment on

1. Why does HUL is able to generate superior ROE to the share holders (5 Marks)
2. Why do you think the overall profit margins of the ITC is higher and Asset turn overi slower for ITC in comparison to HUL (5 Marks)
3. What strategies can ITC adopt to improve its return to the shareholders of the firm (5 Marks)

You can make use of the Income statemen, Balance sheet, Cash flow and segmental data available with you to make your analysis

Answer rating: 100% (QA)

Return On Equity ROE Net Profit Margin x Asset Turnover x Leverage A Hindustan Unilever has a higher ... View the full answer