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Please explain the results of DuPont Results and provide judgment about company A's financial position based on the below table. Please explain where is company
Please explain the results of DuPont Results and provide judgment about company A's financial position based on the below table.
Please explain where is company A strong after reviewing the below financial ratio results?
Is it possible that ROE in profitability Ratio, differs from the DuPont Framework ratio when data-driven from XBRL? Why?
DuPont Framework | ||||||||
Company A | Market Comparison | |||||||
Year | 2014 | 2015 | 2016 | Return on Equity (ROE)=net Sales/Average shareholders' equity | Company A | Company B | Company C | |
Ratio | 0.15 | 0.2 | 0.26 | 0.26 | 0.42 | 1.42 | ||
Year | 2014 | 2015 | 2016 | Profit margin (PM) on sales=Net income/net sales | Company A | Company B | Company C | |
Ratio | 1.4 | 1.7 | 1.69 | 1.69 | 0.31 | 0.21 | ||
Year | 2014 | 2015 | 2016 | Asset Turnover (AT) = Net Sales /Average Total Assets | Company A | Company B | Company C | |
Ratio | 0.06 | 0.06 | 0.09 | 0.09 | 0.48 | 1.03 | ||
Year | 2014 | 2015 | 2016 | Equity multiplier (EM) =Average total assets/average total equity | Company A | Company B | Company C | |
Ratio | 1.2 | 1.23 | 1.23 | 1.23 | 2.39 | 5.2 | ||
DuPont Framework | ||||||||
ROE=PMxATxEM | 0.19 | 0.36 | 1.12 | |||||
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