Have the company's ROA and ROE changed over the last three years? What was the main factor
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Question:
Have the company's ROA and ROE changed over the last three years? What was the main factor that influenced this change? To answer this question, apply DuPont analysis and three factors of the DuPont formula: Net profit margin, asset turnover, financial leverage. What ratio(s) has (have) been changed mostly over these three years and why?
| Year | Return on Equity | Return on Assets | Net Profit Margin | Asset Turnover | Financial Leverage |
| 2023 | 36.20% | 13.51% | 9.90% | 1.32 | 2.68% |
| 2022 | 39.57% | 14.99% | 12.94% | 1.20 | 2.64% |
| 2021 | 44.86% | 15.17% | 12.86% | 1.29 | 2.96% |
Expert Answer:
Based on the DuPont analysis data provided The companys ROA has decreased slightly from 1517 in 202... View the full answer
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