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Dupont analysis of Amazon 2015 and General Mills 2016 Amazon 2015 ROE = Net Profit Margin x Asset Turnover x Leverage 4.45% = 0.56% x

Dupont analysis of Amazon 2015 and General Mills 2016

Amazon 2015

ROE

=

Net Profit Margin

x

Asset Turnover

x

Leverage

4.45%

=

0.56%

x

1.64

x

4.89

General Mills 2016

ROE

=

Net Profit Margin

x

Asset Turnover

x

Leverage

34.20%

=

10.25%

x

0.76

x

4.40

Compare the two companies based on these analyses.

How do you account for the differences and/or similarities in the ratios?

How do the companies rate within their industries?

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