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Using the Dupont model to analyze the differences in profitability (ROE) among the 2 banks using the December 2021 financial statements. What are the potential
Using the Dupont model to analyze the differences in profitability (ROE) among the 2 banks using the December 2021 financial statements. What are the potential reasons for the differences in profitability among these banks ( about 250 words)? Data given below:
DUPONT Decomposition | BNC National bank (Community Bank) | Carver Federal Saving Bank (Community Bank) | |
Profit Margin | 28.10% | -14.98% | |
Asset Utilization | 7.46% | 3.84% | |
Equity Multiplier | 9.11 | 12.94 | |
ROE | 19.09% | -7.44% |
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