According to Du Pont, ROE can be decomposed using the following:
ROE = Net income/Equity = Net income/Sales * Sales/Assets * Assets/Equity
1) ROE decomposition is attached in Excel
2) New calculation is attached in Excel
3) It can be seen that there is no change in return on equity from the change in sales only. The values are the same. But there is a change in the intermediate numbers. For example, due to low sales, Net income/Sales ratio have increased in magnitude while sales/Assets have decreased.
You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.
Latest completed orders:
| # | topic title | discipline | academic level | pages | delivered |
|---|---|---|---|---|---|
|
6
|
Writer's choice
|
Business
|
University
|
2
|
1 hour 32 min
|
|
7
|
Wise Approach to
|
Philosophy
|
College
|
2
|
2 hours 19 min
|
|
8
|
1980's and 1990
|
History
|
College
|
3
|
2 hours 20 min
|
|
9
|
pick the best topic
|
Finance
|
School
|
2
|
2 hours 27 min
|
|
10
|
finance for leisure
|
Finance
|
University
|
12
|
2 hours 36 min
|
