Question: Below is a five factor DuPont system for the decomposition of a firms ROE. Using the attached Consolidated Financial Data, calculate each of the five
Below is a five factor DuPont system for the decomposition of a firms ROE. Using the attached Consolidated Financial Data, calculate each of the five factors for 2021, and show that their product reconciles to the 2021 ROE.
Factors:
1= Net profits/Pretax profits
2=Pretax profits/EBIT
3=EBIT/Sales
4=Sales/Assets
5=Assets/Equity

Consolidated Financial Data
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