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Business, 14.06.2021 18:10 12290737

Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a companyâs financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a companyâs ROE may have changed for the better or worse, and identify particular company strengths and weaknesses. The DuPont Equation A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a companyâs ROE. Required:
What factors directly affect a companyâs ROE?

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