What is dupont analysis and how it aid in financial analysis

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1. What is the DuPont analysis, and how does it aid in financial analysis?

2. How does operating income differ from net income? How do operating assets differ from total assets? What is the advantage in removing nonoperating items from the DuPont analysis?

3. Why are equity earnings usually greater than cash flow generated from the investment? How can these equity earnings distort profitability analysis?

Reference no: EM131318606

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