Using DuPont Analysis to Value Firms

3 years ago
11

DuPont Analysis is a great way to examine the profitability of a company. In this video I discuss how to perform a DuPont analysis to decompose a firm’s profitability into three components: NI margin, asset turnover, and the equity multiplier.

0:00 – Introduction
1:26 – Profitability ratios
2:21 – DuPont Analysis
3:12 – Hands on example using VZ and T
4:27 – Which component of ROE is best?

****** Disclaimer ********
This content is for entertainment and education purposes only. Dr. Dan does not provide investment advice. The information in this video is being presented may not be suitable for all investors as it does not consider individual investor risk tolerance levels, investment goals, or financial circumstances. Past performance may not be a reliable indicator of future performance.

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