ABC Corporation is analyzing its financial performance using DuPont analysis for the fiscal year ending December 31, 2023. The company reported a net income of $2 million, total equity of $10 million, total assets of $25 million, and total liabilities of $15 million. ABC Corporation also generated sales of $20 million.
Using DuPont analysis, calculate the Return on Equity (ROE) by breaking it down into its components. The formula for DuPont analysis is:
ROE = Net Profit Margin x Asset Turnover x Financial Leverage
What is the calculated ROE for ABC Corporation?