Part I: Ask the right questions

A significant portion of developing your analytical mindset happens before you analyze data. While you already have a fundamental understanding of the DuPont Method and are aware of the data elements available to you, you have not yet determined the best way to analyze the data to provide the most relevant insights. To gather the most relevant insights, you must start by asking the right questions of the data. In this section, you will first think through the DuPont Method in more detail so you understand some of the business context. From there, you will identify questions for the data that will provide insights to your stakeholder.

Assume your stakeholder is an investor whose objective is to make some quality investments in the near future based on the performance of the companies in this data set. Your stakeholder is interested in both an industry recommendation and a company recommendation.

Required:

1. Describe whether you want a high value or a low value for each ratio, independent of the other ratios.

Return on equity:

Profit margin ratio:

Asset turnover ratio:

Financial leverage ratio:

2. What questions do you want to ask of the data? Think about relevant insights you want to gain for your stakeholder and identify at least three questions that you want to answer.

I was working on dupon analysis. Please only answer the Question 2. Please make it specific. thx