X Corporate decision makers and analysts often use a particular technique, called a DuPont analysis to better understand the factors that drive company's financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the Hoe into three ROE components, analysts can see why a company's ROE may have changed for better or worse and identify particular company strengths and weaknesses M The DuPont Equation A DuPont analysis is conducted using the Durant equation, which helps to identity and analyze three important factors that drive a company OE Complete the following equations, which are needed to conduct a DuPont analysis ROL - Profil Margin Total Assets Turnover / Total Assets Total Assets / Total Common Equity Sales x Most investors and analysts in the financial community pay particular attention to company's not. The rot can be calculated simply by dividing firm's net income by the firm's shareholder's equity, and it can be divided into the key factors that drive the ROL.restors and analysts focus on these drivers to develop a clearer picture of what is happening within a company. An analyst gathered the following data and calculated the various terms of the DuPont equation for the companies Total Assets Turnover Equity Multiplier 2.14 Profit Margin 57.3 58.2 9.B ROE Company A 12.01 Company 15.5 Company C215 10.2 2.61 3.60 58,0% 102 yoy pa attention to a company's ROE, The ROE can be calculated simply by dividing a m's net income by the firm's shareholder's equity, and it can be subdivided into the key factors that drive the ROE. Investors and analysts focus on mese drivers to develop a clearer picture of what is happening within a company. An analyst gathered the following data and calculated the various arms of the DuPont equation for three companies: ROE X Total Assets Turnover X Equity Multiplier 2.14 12.0% 9.8 Company A Company B Company C Profit Margin 57.3% 58.2% 58.0% 15.5% 10.2 2.61 21.5% 10.3 3.60 Referring to these data, which of the following conclusions will be true about the companies' ROES? The main driver of Company C's superior ROE, as compared with that of Company A's and Company B's ROE, is its efficient use of assets. The main driver of Company C's superior ROE, as compared with that of Company A's and Company B's ROE, Is its greater use of debt financing The main driver of Company C's superior ROE, as compared with that of Company A's and Company B's ROE, is its operational efficiency