The following is a five- year comparative analysis of Accent Companys return on assets and return on
Question:
The following is a five- year comparative analysis of Accent Company’s return on assets and return on equity:
1. What does this analysis tell you about the overall profitability of Accent Company over the five- year period?
2. What does this analysis tell you about what has happened to Accent’s amount of debt over the past fiveyears?
Return on assets Return on equity 2007 8% 20% 2008 7.5% 21% 2009 7.12% 21.8% 2010 6.54% 22.2% 2011 6% 23%
Step by Step Answer:
1 The ROA indicates that the profitability of the company has con...View the full answer
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
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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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