The following financial information about Cole's Colas, Inc., is available: Required Prepare a DuPont analysis for Cole's
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Prepare a DuPont analysis for Cole's Colas and interpret each component of the analysis.
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Total average assets Total average equity Sales Net income 2012 $350,000 190,000 55,000 9,000
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The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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