Question
The main objective of using the DuPont system is to measure the profitability, asset turnover, and financial leverage of a company. It helps to identify
The main objective of using the DuPont system is to measure the profitability, asset turnover, and financial leverage of a company. It helps to identify which portion contributes least or most to ROE. It also shows the profitability margin of a company, which is measured by the profit ratio. For any company, profitability margin is necessary as it shows the bottom line to its shareholders, asset turnover is necessary as it shows how much income a firm can produce through its assets. Hello, I need some help I commented the above content on a discussion post and my professor wants me to explain the following. "For any business, profitability margin is necessary as it shows the bottom-line to its shareholders". How should I address or explain this specific part?
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