Question: If I remember correctly, the DuPont equation breaks down our return on equity ( ROE ) into three component ratios: the net profit margin ,
If I remember correctly, the DuPont equation breaks down our return on equity ROE into three component ratios: the net profit margin the ratio and the
And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the companys effectiveness in using the companys assets, and
Now, lets see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios.
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