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Discuss what is DuPont Analysis. Does its practising in Malaysia? Popularized by the DuPont Corporation, the DuPont analysis breaks down a company's return on equity
Discuss what is DuPont Analysis. Does its practising in Malaysia? Popularized by the DuPont Corporation, the DuPont analysis breaks down a company's return on equity ROE into three key drivers: operating efficiency, asset efficiency, and financial leverage. This tool shows individual metrics for investors to pinpoint strengths and weaknesses, compare operational efficiency across firms, and guide targeted improvements for managers. In essence, the DuPont analysis provides a diagnostic tool to understand the why behind a company's ROE. This can be useful to investors and managers to make more informed and smarter decisions based on specific quantifiable strengths and weaknesses.
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