Question: Evaluate Return on Equity for Microsoft Corp. for the last three years using the DuPont analysis. Taking the information from the Income statements and the

Evaluate Return on Equity for Microsoft Corp. for the last three years using the DuPont analysis.

Taking the information from the Income statements and the Balance sheets, calculate the companys net profit margin, total assets turnover equity multiplier, and return on equity using the DuPont formula for the company for three years. Show your calculation!

ROE = Net profit margin x Total assets turnover x Equity multiplier

= Net income/Sales x Sales/Total assets x Total assets/Common equity

You can use Revenue instead of Sales.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!