DuPont Formula and Industries
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Profit margins and turnover ratios vary from one industry to another. what differences would you expect to find between a grocery chain such as Safeway and a steel company? Think particularly about the turnover ratios. the profit margin and the Di Pont equation.
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Profit margins and turnover ratios vary from one industry to another. what differences would you expect to find between a grocery chain such as Safeway and a steel company? Think particularly about the turnover ratios. the profit margin and the DuPont equation.
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The DuPont Formula states that a company's return on investment equals the product of its profit margin and its total asset turnover. Therefore, Return on Investment=(Net Income/Sales)*(Sales/Total Assets). Profit margin is the amount of income that a company keeps after ...
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