Difference between revisions of "DuPont equation"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[DuPont equation]]. A formula showing that the rate of return on equity can be found as the profit margin multiplied by the product of total assets turnover and the equity multiplier. | :[[DuPont equation]]. A formula showing that the rate of return on equity can be found as the profit margin multiplied by the product of total assets turnover and the equity multiplier. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
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==Related concepts== | ==Related concepts== | ||
Revision as of 17:37, 1 November 2019
DuPont equation is a formula showing that the rate of return on equity can be found as the profit margin multiplied by the product of total assets turnover and the equity multiplier.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- DuPont equation. A formula showing that the rate of return on equity can be found as the profit margin multiplied by the product of total assets turnover and the equity multiplier.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
