Question: Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company's financial performance,

 Corporate decision makers and analysts often use a particular technique, called
a DuPont analysis, to better understand the factors that drive a company's

Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company's financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why s company's ROE may have changed for better or worse and identify particular company strengths and weaknesses. The DuPont Equation A Dupent anelysis is conducted using the Dupont equation, which helps to identify and analyze three important factors that drive a company's ROE. Actording to the equation, which of the following factors directly affect a company's ROE? Check all that apply. Operational efficiency Market-to-bookivalie rotio Finandal leverage Most investors and analysts in the financial community pay particutar attention to a company's ROF. The ROE can be calculated aumply by dividing a firm's net income by the firm's shareholder's equat, and it can be subdivided into the key factors that drive the ROE, Investors and analysts focus on these driven to develop a dearer picture of what is happening within a combany. An analyst pothered the following data and calculated the various terms of the Dupont equation for three companies: Aost imvestors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be calculated simply by dividing a frmes thet heome by the Tim's shareholder's equity, and it can be subdivided into the key factors that drive the RoE. Investors and analysts focus on these drivers to develop a dearer picture of what is happening within a company. An analyst gathered the following data and calculated the various terms of the Dupont equation for three companies: Weferning to these data, which of the fohowing conctusians will be true sbout the companies' Hots

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