What is the Dupont equation?
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Julian Clark
Works at the International Finance Corporation, Lives in Washington, D.C., USA.
As a subject matter expert in finance and economics, I can provide you with an explanation of the DuPont equation. The DuPont equation is a financial formula used to break down the components of return on equity (ROE), which is a measure of a company's profitability. The equation was developed by the DuPont Corporation in the 1920s to analyze its own financial performance.
The basic DuPont equation is expressed as follows:
**ROE = Profit Margin × Total Asset Turnover × Equity Multiplier**
The basic DuPont equation is expressed as follows:
**ROE = Profit Margin × Total Asset Turnover × Equity Multiplier**
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Studied at Stanford University, Lives in Palo Alto, CA
DuPont formula (also known as the DuPont analysis, DuPont Model, DuPont equation or the DuPont method) is a method for assessing a company's return on equity (ROE) breaking its into three parts. The name comes from the DuPont Corporation that started using this formula in the 1920s.
2023-04-09 07:57:24
Scarlett Gonzales
QuesHub.com delivers expert answers and knowledge to you.
DuPont formula (also known as the DuPont analysis, DuPont Model, DuPont equation or the DuPont method) is a method for assessing a company's return on equity (ROE) breaking its into three parts. The name comes from the DuPont Corporation that started using this formula in the 1920s.
