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Explanation and Calculation of Du Pont Identity

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Construct the DuPont identity for Smolira Golf. What is the DuPont identity?

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Solution Summary

I have given an explanation of Du Pont identity in this solution. I have also explained how to calculate Du Pont identity from financial statements.

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DuPont identity is one of the more important ratios for financial analysis.

DuPont identity:
ROE = Net Income/Sales * Sales/Assets * Assets/Shareholders' ...

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