Discuss and evaluate the three parts of roe for each company. How much of roe is due to profitability (net income/sales or net margin) how much is due to leverage (equity multiplier or total assets / total equity) how much is due to efficiency (asset turnover or sale/total assets) DuPont is a way to pull apart roe to look at its three components to try to understand. is ford's roe similar to the industry or competitors. What are the trends? Does ford use more leverage, have worse turnover, improving profit margins? Which is more attractive? Where it states, discuss and evaluate the three parts of roe for each company, the main company we are evaluating if ford motor company, please compare results to GM (General Motors) and TM (Toyota Motor).

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DuPont analysis is a measure which breaks down the Return on Equity into three major components and helps in understanding the impact of each of these components on Return on Equity The three componen... View the full answer