Du Pont Ratio Analysis
Return on Common Equity
	ROCE = CI/AvgCSE			3.73%	(46.44%)	26.48%	20.51%
		Change			(50.17%)	72.93%	(5.97%)
Return on Net Operating Assets
	RNOA = OI(after-tax)/AvgNOA			4.57%	(7.49%)	5.58%	5.79%
		Change			(12.05%)	13.07%	0.21%
First-Level DuPont Break-Down
	FLEV = AvgNFO/AvgCSE (AvgNFA/AvgCSE)			18.78%	252.63%	920.23%	718.57%
	NBC = NFE/AvgNFO			9.04%	7.93%	3.31%	3.74%
	Spread = RNOA - NBC			(4.47%)	(15.42%)	2.27%	2.05%
	ROCE = RNOA + [FLEVxSpread]			3.73%	(46.44%)	26.48%	20.51%
Second-Level DuPont Break-Down
	PM = OI(after-tax)/Sales			1.37%	-4.99%	5.37%	5.00%
	AT = Sales/AvgNOA			3.33	1.50	1.04	1.16
	RNOA = PMxAT			4.57%	-7.49%	5.58%	5.79%
Break-Down of RNOA by Category of OI
	Core OI from Sales (after-tax)/AvgNOA			(9.58%)	(1.89%)	1.18%	0.74%
	Core Other OI (after-tax)/AvgNOA			15.48%	6.00%	4.64%	5.45%
	Unusual OI (after-tax)/AvgNOA			(1.26%)	(11.59%)	(0.26%)	(0.44%)
	Operating OCI (after-tax)/AvgNOA			(0.07%)	(0.01%)	0.03%	0.04%
	RNOA = sum of above			4.57%	(7.49%)	5.58%	5.79%

D2 RNOA interpretation

Explain the operation factors/reasons for changes in RNOA over the year period FY19-FY22. You will need to research what happened to the company over this period to understand the major causes of changes in RNOA (e.g. the company opened ten new stores, driving an increase in sales (2022 Annual Report)). Refer to your calculations in D1 to support your answer, e.g. the breakdown of RNOA into PM and ATO. Your explanations must be supported by evidence. Make sure to include in-text references or footnotes to your sources of information. Make sure to provide answer in your own words.

D3 ROCE interpretation

Consider the first-level break-down: ROCE = RNOA + FLEV x SPREAD. How does financial leverage affect the companys ROCE over the three-year period FY19-FY22? Has financial leverage increased or decreased ROCE compared to RNOA? Why? If there have been significant changes in financial leverage, discuss why they occurred. Make sure to assess and discuss the effects that changes in accounting standards may have had. Your explanations must be supported by evidence. Make sure to include in-text references or footnotes to your sources of information. Make sure to provide answer in your own words.