Using DuPont analysis is a quick and relatively easy way to assess the overall health of a firm
Firm: Kellogg’s
Using DuPont analysis is a quick and relatively easy way to assess the overall health of a firm. This week’s lesson (Page 4) includes information on the DuPont equation. Go to finance.yahoo.com and choose a company by entering the company name in the box to the left of “Get Quotes.” Once you have the company overview page open, to the left you will see a list of links for further information on that firm. Near the bottom of the link column are financial statements. Open the firm’s income statement and balance sheet and use the information there to calculate all parts of the DuPont Ratio for the past three years; do not use Nike. If your firm does not have 3 years of full information, choose a different firm. Report each ratio value as well as the numerator and denominator of each of the 4 ratios for the past 3 years (12 ratios in total). Discuss the trends revealed in each ratio. Please be sure to note your firm’s name in the title of your post and please do not duplicate firms. Your instructor is posting information on Nike as an example; you might want to study that post before you begin.
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The year ending 30th December 2017 has the highest ability in increasing ROE. This was made possible due to the highest financial average of 155.71. 12/31/2016 had the lowest ROE; this can be attributed to low profit margin and financial leverage………………………..
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