Corporate Documents: Financial Management: Dupont Analysis

Pages: 1 (359 words)  ·  Bibliography Sources: 2  ·  File: .docx  ·  Level: College Senior  ·  Topic: Economics

Buy full Download Microsoft Word File paper
for $19.77

Financial Management: DuPont Analysis

The DuPont analysis I conduct below will come in handy in the determination of how Wal-Mart and Target are achieving their Return on Equity (ROE). According to Baker and Powell (2009), the DuPont analysis formula can be presented as:

Return on equity = Profit margin * Total asset turnover * Equity multiplier

DuPont Model



Net Profit Margin

Asset Turnover

Equity Multiplier

Return on Equity

In regard to Wal-Mart, the increase in ROE was largely as a result of an increase in the asset turnover and equity multiplier. Similarly, the increase in ROE in the case of Target was as a result of an increase in the equity multiplier and asset turnover. Taking into consideration the ROE of both companies, it is clear that the stockholders of Wal-Mart are racking in more profits for each dollar invested in the company. Target however seems to rake in more profits than Wal-Mart per every revenue dollar. This can be gleaned from the net profit margins of both companies. Target's high equity multiplier on the other hand… [END OF PREVIEW]

Two Ordering Options:

Which Option Should I Choose?
1.  Buy full paper (1 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions, guaranteed!
Chat with the writer 24/7.

Two Company's Financials in Evaluating a Job Offer Essay

Knowledge Management in the Automotive Industry Term Paper

Financial Analysis State Street Corporation Term Paper

Ratio and Financial Statement Analysis Essay

Company Stock Analysis Abbott Laboratories ABT Term Paper

View 42 other related papers  >>

Cite This Corporate Documents:

APA Format

Financial Management: Dupont Analysis.  (2013, February 14).  Retrieved December 7, 2019, from

MLA Format

"Financial Management: Dupont Analysis."  14 February 2013.  Web.  7 December 2019. <>.

Chicago Format

"Financial Management: Dupont Analysis."  February 14, 2013.  Accessed December 7, 2019.