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.
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