2024 – When we Discussed the Du Pont equation ROE PM TAT EM
Discussion – 2024
When we Discussed the Du Pont equation: ROE = PM * TAT * EM.
The three distinct ratios that are combined to calculate ROE are interesting in the fact that individually they each serve a purpose. Please discuss each of the Ratios that make up the Du Pont Formula and also comment on the EM ratio and how that ties back to our discussion on Financial Leverage?
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