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What is the meaning of each financial ratio? Dupont analyses Tax effect 0.83 0.93 Interest expense effect Operating profit margin 0.10 Total asset turnover 1.15

What is the meaning of each financial ratio?

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Dupont analyses Tax effect 0.83 0.93 Interest expense effect Operating profit margin 0.10 Total asset turnover 1.15 Financial leverage 3.04 improve efficiency -> increase total asset turnover improve financial leverage -> borrow more improve reduce interest expenses look at P/E to see it is a good investment or not if the companies have good financial ratios and not very high P/E -> good investment 0.92 0.96 0.11 1.51 2.86 -0.28 -1.17 0.01 0.39 3.15 0.41 0.18 0.08 0.27 3.04

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