Question: Eee Pte Ltds return on equity (ROE) improved from 13% (in 2019) to 18% (in 2020). Illustrate, using DuPont analysis, two (2) possible reasons for

 Eee Pte Ltds return on equity (ROE) improved from 13% (in

Eee Pte Ltds return on equity (ROE) improved from 13% (in 2019) to 18% (in 2020). Illustrate, using DuPont analysis, two (2) possible reasons for this observation.

The following ratios are computed for three companies operating in different industries: Operating profit margin Days of sales outstanding Inventory turnover Fixed asset turnover Aee Pte Ltd 8.4% 2 day 8.8x 2.8x Bee Pte Ltd 13.9% 20 days 0.7x 0.6x Cee Pte Ltd 18.2% 65 days nil 12.3x

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