Reference no: EM132575086
The DuPont formula relates return on equity (= Net incomet ÷ Stockholders equityt) to the company's net profit margin (= Net income ÷ Sales), asset turnover (= Salest ÷ Total assetst), and equity multiplier (= Total assets ÷ Stockholders equity). This Company is in an industry where the average net profit margin is 10.65%, the debt-to-asset ratio (=Debt ÷ Total assets) is 41.10%, and return on equity is 47.06%. Find below the Company's financial statements for year 2525.
CA$6,644Debt$5,847 Sales$31,111PP&E$7,851SE$8,648 total costs$27,867TA$14,495 $14,495 NI$3,244
the company's asset turnover indicates sales are unusually small relative to its assets
the company's equity multiplier indicates the firm has an unusually small debt burden
the company's profit margin indicates its revenues are unusually small relative to its costs
the company's asset turnover indicates sales are unusually large relative to its assets
the company's equity multiplier indicates the firm has an unusually large debt burden