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1e: Interpret the DuPont Formula ratios by explaining if its four ratios are a valid substitute for the ratios in Q1a-1d above. Fill out the
1e: Interpret the DuPont Formula ratios by explaining if its four ratios are a valid substitute for the ratios in Q1a-1d above. Fill out the table and write your brief analysis below. | |||||
2007 | 2008 | 2009 | TREND | ||
DuPont Formula - ROE | 13.3% | 0.8% | 12.7% | -4.5% | |
Profitability | 2.9% | 0.2% | 2.8% | -3.4% | |
Efficiency | 2.8 | 2.6 | 2.5 | -10.7% | |
Leverage | 1.6 | 1.8 | 1.8 | 12.5% | |
ROE Check | 13.3% | 0.8% | 12.7% | -4.5% |
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