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Unformatted text preview: DUPONT RO E = P r ofit M a rgin x Total A s s et Turnove r x E quity M ultiplier. A Sample Balance Sheet Assets Liabilities Cash 10Accounts Payable 10 Accounts Receivable 40Long Term Debt 10 Inventory 20 Patents/Intellectual Property 5 Total Liabilities 20 Equity Common Stock 50 Preferred Stock 5 Total Equity 55 Total Assets 75 Total Equity +Liabilities 75 Ratio Name Ratio Relationships Current Current Assets/Current Liabilities Debt/Equity Total Debt/Total Equity Total Asset Turnover Sales/Total Assets Profit Margin Net Income/Sales Equity Margin/Multiplier Total Assets/Total Equity Return on Equity Net Income/Total Equity A Sample Income Statement Sales 100 Operating Expenses 20 Earnings Before Interest and Taxes 80 Interest 10 Taxes 20 Net Income 50...
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- Fall '09