Return on Equity Du Pont

Posted by Professor Cram in Ratios of Profitability

Return on Equity (Du Pont)

Return on equity (ROE) measures profitability related to ownership. Management at Du Pont came up with Return on Equity (Du Pont), an approach that showed that return on equity depends on ROA and the equity multiplier. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

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