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CFA Level 1
Financial Reporting and Analysis

Calculating ROE using DuPont Analysis

Medium Analysis Techniques Dupont Analysis

XYZ Corporation is analyzing its return on equity (ROE) using the DuPont Analysis framework. In the most recent fiscal year, XYZ reported a net income of $500,000, total revenue of $2,000,000, and total equity of $1,000,000. The company has a profit margin of 25% and an asset turnover ratio of 2.0. Based on this information, what is the ROE for XYZ Corporation according to the DuPont Analysis method?

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