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Dupont ratios
The Trio of Ratios: Key Components of DuPont Analysis
November 13, 2023
What are the three key ratios used in DuPont Analysis?
DuPont Analysis relies on three crucial ratios: net profit margin, asset turnover, and equity multiplier. These ratios collectively break down Return on Equity (ROE) into components, offering a detailed assessment of a company's profitability, operational efficiency, and financial leverage. Analysts use these ratios to gain a nuanced understanding of a firm's financial performance.
Tags : DuPont Ratios , ROE Components , Financial Performance