Can anyone explain conceptually what is this Du-Point analysis in Ratio's chapter of PCC.....!?
3 Replies
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 14 October 2010
DU PONT ANALYSIS:
The system of analysis brings together the net profit margin and total assets turnover ratio and shows how these ratios interact to determine profitability of assets.
Symbolically it is expressed as follows:
Return on investment (ROI) or Return on Total assets (ROTA)=
Net profit / Sales * Sales / Total assets
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