What are some pros and cons of holding high levels of current assets in relation to sales?
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Use the DuPont equation to help explain your answer.
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The extended DuPont equation is ROE Profit margin on sales x Total assets turnover x Leverage fac...View the full answer
Answered By
Raghava Lakhotia
Hi,
Over my years of experience working as a CA (equivalent to CPA) I have worked across various industries and donned various duties.
I started my career as a trainee with one of the top 20 CA firms in India back in 2007 and qualified as a CA in 2012. In the 3.5 years of training I was awarded the best employee award twice. Post qualifying as a CA I kept on working for the same organization for 2 more years during which I was the auditor for the biggest bank in India as well as one of the biggest B2B Data services provider in the world. Over my years of experience working at a CA firm I had he opportunity to audit the biggest companies in India across all segments. I have been involved in assignments in Oil, Airlines, Telecommunications, Airports, Co working spaces, Power plants, ports, Infrastructure companies, Banks, and many other sectors. I have gone from being a trainee to leading a team of over 20 in the 5 years at the organization.
Post the CA firm I joined one of the leading banks in India in their Investment banking division. Here I was involved in various deals involving fund raising of hundreds of millions of dollars for various clients.
Post a small stint at the bank I decided to go work for myself. This is when I decided to partner in a CA firm as well as start a textiles business of my own. After 2 years into the textile business I realized it's not for me and so I decided to concentrate on my consultancy practice and as such moved completely to consultancy.
Since then I have successfully raised funds for various corporates across industries and continue to do so
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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