write the DuPont Equation: ROE = PM*TAT*EM. Explain your answer.( 1-2 paragraph explanation.)

Financials
	TTM	2016-01	2015-01	2014-01	2013-01
Revenue USD Mil	15,472	15,797	16,435	16,148	15,651
Gross Margin %	36.1	36.2	38.3	39	39.4
Operating Income USD Mil	1,245	1,524	2,083	2,149	1,942
Operating Margin %	8	9.6	12.7	13.3	12.4
Net Income USD Mil	670	920	1,262	1,280	1,135
Earnings Per Share USD	1.68	2.23	2.87	2.74	2.33
Dividends USD	0.92	0.92	0.88	0.7	0.5
Payout Ratio % *	54.7	37.3	30.8	22.3	23.9
Shares Mil	400	413	440	467	488
Book Value Per Share * USD	6.83	6.57	6.78	6.58	6.59
Operating Cash Flow USD Mil	1,660	1,594	2,129	1,705	1,936
Cap Spending USD Mil	-604	-726	-714	-670	-659
Free Cash Flow USD Mil	1,056	868	1,415	1,035	1,277
Free Cash Flow Per Share * USD		2.47	2.63	2.04	2.79
Working Capital USD Mil		1,450	2,083	1,985	1,788
Key Ratios -> Profitability
Margins % of Sales	TTM	2016-01	2015-01	2014-01	2013-01
Revenue	100	100	100	100	100
COGS	63.94	63.79	61.73	61.03	60.57
Gross Margin	36.06	36.21	38.27	38.97	39.43
SG&A
R&D
Other	28.01	26.56	25.59	25.66	27.02
Operating Margin	8.05	9.65	12.67	13.31	12.41
Net Int Inc & Other	-0.43	-0.34	-0.43	-0.35	-0.52
EBT Margin	7.62	9.31	12.25	12.96	11.89
Profitability	TTM	2016-01	2015-01	2014-01	2013-01
Tax Rate %	43.17	37.46	37.31	38.84	39.01
Net Margin %	4.33	5.82	7.68	7.93	7.25
Asset Turnover (Average)	1.96	2.08	2.12	2.11	2.1
Return on Assets %	8.47	12.13	16.24	16.71	15.24
Financial Leverage (Average)	2.94	2.94	2.58	2.56	2.58
Return on Equity %	25.12	33.29	41.75	42.98	40.18
Return on Invested Capital %	16.07	22.14	29.71	30.58	24.95
Interest Coverage	16.72	25.93	27.84	35.31	22.39
Key Ratios -> Growth
	Latest Qtr	2016-01	2015-01	2014-01	2013-01
Revenue %
Year over Year	-1.53	-3.88	1.78	3.18	7.57
3-Year Average		0.31	4.15	3.27	3.3
5-Year Average		1.5	2.97	2.14	-0.14
10-Year Average		-0.14	0.1	0.18	0.8
Operating Income %
Year over Year	-6.04	-26.84	-3.07	10.66	35.05
3-Year Average		-7.76	13.15	2.98	2.28
5-Year Average		-4.99	2.79	6.78	8.11
10-Year Average		-1.35	-0.01	1.35	6.73
Net Income %
Year over Year		-27.1	-1.41	12.78	36.25
3-Year Average		-6.76	14.85	2.06	0.99
5-Year Average		-5.24	2.75	5.77	6.38
10-Year Average		-1.89	0.93	2.2	9.05
EPS %
Year over Year	-16.39	-22.3	4.74	17.6	49.36
3-Year Average		-1.45	22.53	13.38	13.82
5-Year Average		3.47	12.68	15.38	17.28
10-Year Average		6.04	9.02	9.66	15.74
Key Ratios -> Cash Flow
Cash Flow Ratios	TTM	2016-01	2015-01	2014-01	2013-01
Operating Cash Flow Growth % YOY
Free Cash Flow Growth % YOY
Cap Ex as a % of Sales	3.9	4.6	4.34	4.15	4.21
Free Cash Flow/Sales %	6.83	5.49	8.61	6.41	8.16
Free Cash Flow/Net Income	1.58	0.94	1.12	0.81	1.13
Key Ratios -> Financial Health
Balance Sheet Items (in %)	Latest Qtr	2016-01	2015-01	2014-01	2013-01
Cash & Short-Term Investments	19.01	18.33	19.7	19.24	20.21
Accounts Receivable		3.77	5.5	5.89	4.43
Inventory	29.95	25.06	24.56	24.56	23.53
Other Current Assets	9.38	6.16	6.37	6.75	7.14
Total Current Assets	58.34	53.33	56.14	56.44	55.31
Net PP&E	33.25	38.14	36.06	35.14	35.06
Intangibles		3.64	3.54	3.96	4.23
Other Long-Term Assets	8.42	4.9	4.27	4.46	5.39
Total Assets	100	100	100	100	100
Accounts Payable	17.65	14.88	15.25	15.82	15.31
Short-Term Debt	5.3	5.63	0.27	0.32
Taxes Payable	0.24	0.31	0.26	0.46	1.45
Accrued Liabilities	13.23	11.76	6.88	4.7	5.29
Other Short-Term Liabilities		1.34	6.38	9.85	9.33
Total Current Liabilities	36.41	33.92	29.05	31.15	31.38
Long-Term Debt	16.49	17.53	17.32	17.44	16.68
Other Long-Term Liabilities	13.06	14.49	14.84	12.4	13.2
Total Liabilities	65.95	65.94	61.21	60.99	61.26
Total Stockholders' Equity	34.05	34.06	38.79	39.01	38.74
Total Liabilities & Equity	100	100	100	100	100
Liquidity/Financial Health	Latest Qtr	2016-01	2015-01	2014-01	2013-01
Current Ratio	1.6	1.57	1.93	1.81	1.76
Quick Ratio	0.52	0.65	0.87	0.81	0.79
Financial Leverage	2.94	2.94	2.58	2.56	2.58
Debt/Equity	0.48	0.51	0.45	0.45	0.43
Key Ratios -> Efficiency Ratios
Efficiency	TTM	2016-01	2015-01	2014-01	2013-01
Days Sales Outstanding		6.43	8.18	8.96	7.32
Days Inventory	90.32	68.13	68.66	68.26	64.93
Payables Period	50.55	41.38	43.44	44.19	42.54
Cash Conversion Cycle		33.18	33.4	33.04	29.71
Receivables Turnover		56.72	44.6	40.73	49.84
Inventory Turnover	4.04	5.36	5.32	5.35	5.62
Fixed Assets Turnover	5.65	5.62	5.94	6.01	6.09
Asset Turnover	1.96	2.08	2.12	2.11	2.1