Reference no: EM132408733
What do the DuPont equations from 2018 tell us about Williams Company compared to Blumer Co?
Williams ROA= 2314/71309 X 71309/34508=2314/34508
Williams ROA= 3.25% X 2.07=6.71%
Williams ROE= 2314/71309 X 71309/34508 X 1/(1-0.89)=2314/3644
Williams ROE= 3.25% X 2.07 X 9.09=63.5%
Blumer ROA=(11,121)/108,203 X 108,203/44,003 =11,121/44,003
Blumer ROA=10.28% X 2.46 =25.27%
Blumer ROE=11,121/108,203 X 108,203/44,003 X 1/(1-1.043)=11,121/(-1,878)
Blumer ROE=10.28% X 2.46 X-23.26=-592%
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