Below are the DuPont analyses of 2012 and 2013 for Company X. RETURN ON EQUITY (ROE)
10.55%
11.74%
=
PROFIT MARGIN
2.60%
1.80%
Х
ASSET
TURNOVER
1.33
2.27
X
LEVERAGE
3.051
2.873
2012
2013
Based on the breakdown of the DuPont framework, which of the following statements is true regarding
Company X?
Company X is more profitable in 2013 than in 2012.
Company X has more assets in 2013 than in 2012
Company has a lower assets to equity ratio in 2013 than in 2012.
Share
0 Replies