DuPont Analysis is a financial performance framework which breaks down return on equity (ROE) into three parts: profit margin, total asset turnover, and financial leverage. It is used to assess the quality of a company's ROE and see how it is affected by these three factors. The analysis allows investors to understand how a company is generating its ROE and compare it with others in the industry.
Follow up to the first part of our Business Strategies and Frameworks compilation, part 2 offers you...
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