Du Pont Calculation Examples, Illustrations, Concepts, Sample Help Online
Looking for Du Pont Calculation Examples, Illustrations and Concepts to do your assignments, homework or project then you are at the perfect place.
Understanding the concept of Du Pont
Basically, DuPont analysis is a technique which breaks the return on equity (ROE) into three parts. It is a measure to identify what exactly is affecting a company’s return. A company’s return is affected by high profit margin, efficient use of assets to generate more sales and use of more debt in its capital structure.
Return on equity (ROE) measures net income earned by the company for its shareholders. It is calculated by diving net income by average shareholders’ equity.
ROE = Net Income/Average Shareholders’ Equity
Let us multiply and divide the above equation with Sales and Average Total Assets
ROE = (Net Income/Average Shareholders’ Equity) x (Sales/Sales) x (Average Total Assets/Average Total Assets)
ROE = (Net Income/Sales) × (Sales/Average Total Assets) x (Average Total Assets/ Average Shareholders’ Equity)
ROE = Net Profit Margin × Total Assets Turnover Ratio × Financial Leverage Ratio
Services We Offer
Popular Finance Assignment Help Online Services
Assignment always put student on worries and stress. But with Assignment Consultancy for your help, you can select any of our popular services and remove all your worries here.
- Project Finance Case Studies Help
- Finance Online Exam Help
- Balance Sheet Analysis Homework Help
- Activity Ratios Financial Assignment help
- Performance Ratios Analysis Finance Assignment help
- Activity Ratio Assignment Help
- Market Based Ratio Analysis Assignment Help
- Profitability Ratio analysis Assignment Help
- Financial statement analysis case study assignment help
- Finance MBA assignment help
- Economics assignment help
- Statistics assignment help
- Business Plan assignment help
Why Select Us
Finance Assignment Help Online Features
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to firstname.lastname@example.org or chat with our representative using live chat shown in bottom right corner.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Refer us and Earn up to 5000 USD
Place Order and generate unique Code
Whenever you make a payment. You are eligible for a referral code, just request in email so that you will get the code which you can share with your friends.
You will be eligible for referral bonus if your friend place the order using the same referral code using no other discounts after successful payment made by him.
Encash it or Use it in your next assignments
You can request the encashment as mentioned in step 2 or you can use it as a method of payment for your next assignments.
Du Pont Calculation Examples Explanation
Example: Suppose X and Y are two companies in shoe-making business. They manufacture and market shoes for women and men respectively. The companies have earned a return on equity of 15%.
Return on equity 15% 15%
Net profit margin 7.5% 10%
Total assets turnover2 1
Financial leverage ratio1 1.5
Y has higher net profit margin, its ability to use its assets to generate sales is average which it has achieved by higher use of debt in its capital structure.
If you want to have a better understanding on Du Pont Calculation Examples type assignment, click here . You can visit us for more examples here.