GK
ACCOUNTING
Question
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Capital Budgeting


Analysis of Profit


Analysis of Fixed Assets


Analysis of Current Assets

Detailed explanation1: 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.
Detailed explanation2: The ThreeStep DuPont Calculation We have ROE broken down into net profit margin (how much profit the company gets out of its revenues), asset turnover (how effectively the company makes use of its assets) and equity multiplier (a measure of how much the company is leveraged).
Detailed explanation3: Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. DuPont De Nemours net profit margin as of December 31, 2022 is 44.54%.
Detailed explanation4: The DuPont Equation: In the DuPont equation, ROE is equal to profit margin multiplied by asset turnover multiplied by financial leverage. Under DuPont analysis, return on equity is equal to the profit margin multiplied by asset turnover multiplied by financial leverage.
Detailed explanation5: The name comes from the DuPont company that began using this formula in the 1920s. DuPont explosives salesman Donaldson Brown invented the formula in an internal efficiency report in 1912.