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Hershey Co. reported the following income statement and balance sheet (in millions) for 2011. Construct the expanded

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Hershey Co. reported the following income statement and balance sheet (in millions) for 2011. Construct the expanded DuPont identity similar to Figure 3.1. What is the company's return on equity?

Hershey Co. reported the following income statement and balance sheet


DuPont Identity
The DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...
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Income Statement Balance Sheet Liabilities & Equity S6,080.788 3,548.896 Other costs 1,288.373 Depreciation 188.491 $1,055.028 92.183 S 962.84!5 333.883 Net income 628.962 Current assets Current liabilities $1,173.775 $693.686 Accounts receivable 703.919 Long-term debt S3,539.551 EBIT Total Fixed assets 648.953 $2,046.558 Shareholders $3,539.416 equity $872.648 EBT Taxes Total liabilities and Total assets $5,585.974 equity S5,585.974

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Essentials of Corporate Finance

Essentials of Corporate Finance

ISBN: 978-0078034756

8th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Related Video

The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.

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