(a) What is DuPont analysis and how does it aid in financial analysis? (7) (b) Explain your answer with the help of following required calculations of M/S Platinum Enterprises: - Year 2020 Year 2019 Net Income 52,500 40,000 Net Sales 1,050,000 1,000,000 Average Total Assets Average Equity 230,000 200,000 170,000 160,000 Required: i. Net Profit Margin ii. Assets Turnover ii. Financial Leverage Ratio iv. Comment on the results.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(a) What is DuPont analysis and how does it aid in financial analysis?
(7)
(b) Explain your answer with the help of following required calculations of
M/S Platinum Enterprises: -
Year 2020
Year 2019
Net Income
52,500
40,000
Net Sales
1,050,000
1,000,000
Average Total Assets
Average Equity
230,000
170,000
200,000
160,000
Required:
i. Net Profit Margin
ii. Assets Turnover
ii. Financial Leverage Ratio
iv. Comment on the results.
Transcribed Image Text:(a) What is DuPont analysis and how does it aid in financial analysis? (7) (b) Explain your answer with the help of following required calculations of M/S Platinum Enterprises: - Year 2020 Year 2019 Net Income 52,500 40,000 Net Sales 1,050,000 1,000,000 Average Total Assets Average Equity 230,000 170,000 200,000 160,000 Required: i. Net Profit Margin ii. Assets Turnover ii. Financial Leverage Ratio iv. Comment on the results.
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