Question: please help me! Question 12 15 pts What are the determinants of return on equity (ROE) based on the DuPont mode of financial ratio analysis?
Question 12 15 pts What are the determinants of return on equity (ROE) based on the DuPont mode of financial ratio analysis? Discuss each of the component ratio of ROE and how each component ratio may be improved. Be specific and thorough Edt View insert Format Tools Table 12tParagraph PS- BE 7 B Return on Equity Net Income / Total Shareholders Equity As per Dupont ratio Return on Equity - (Net Profit Marginx Total Assettum Return on equity depends upon the Net profit margin total Net profit main sameture of probability. So, to improve Profitability is dependent upon the cost structure of the company Asset turvaver represents sales generated for each dollarin It measures the chciency of asset tilation. Soassets Equity Multider measures the raceverage of the form A higher equity iplier increases the ROE But it should
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