Derivations of the Dupont Method

Derivations of the Dupont Method - ROE Sales Total Assets...

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DERIVATIONS OF THE DUPONT METHOD Net Income ROE Stockholders' Equity = (1) Ratio Equity ROA ROE = which is the same as Stockholders' Equity ROA / Total Assets ROA ( 29 Stockholders' Equity ROE Net Profit Margin * Total Asset Turnover / Total Assets = Operating Asset Financial Efficiency Efficiency Leverage Net Income Sales Stockholders' Equity ROE * / Sales Total Assets Total Assets = Net Income Stockholders' Equity ROE / Total Assets Total Assets = Ratio Equity ROA ROE =
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(2) ROE = Total Assets ROA * Stockholders' Equity Equity Multiplier ROA ( 29 Total Assets ROE Net Profit Margin* Total Asset Turnover * Stockholders' Equity = Operating Asset Financial Efficiency Efficiency Leverage Net Income Sales Total Assets
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Unformatted text preview: ROE * * Sales Total Assets Stockholders' Equity = Net Income Total Assets ROE * Total Assets Stockholders' Equity = Net Income ROE Stockholders' Equity ∴ = (3) Ratio Debt 1 ROA ROE-= which is the same as Ratio Debt -1 1 * ROA Same as the Equity Ratio ROA ( 29 Ratio Debt -1 1 * Turnover Asset Total * Margin Profit Net ROE = Operating Asset Financial Efficiency Efficiency Leverage = Assets Total Debt Total-1 1 * Assets Total Sales * Sales Income Net ROE = Assets Total Debt Total-1 1 * Assets Total Income Net ROE Ratio Debt 1 ROA ROE-= ∴...
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Derivations of the Dupont Method - ROE Sales Total Assets...

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