3) To highlight industry differences for the DuPont ratio changes, this article reports the average:
Overall, the DuPont ratio levels did not improve universally over the decade.
2000 and 2010 DuPont Ratio Industry Averages and CAGR for the 10-year Growth in those Averages ROS (%) ATO (multiple) INDUSTRY 2000 2010 CAGR % * 2000 2010 CAGR % * Household Personal 10.
The question of interest arising from these factors is, "How have the values for the five DuPont ratios changed?
Third, the changes in the DuPont ratios offer an opportunity for comparison with four other fundamental financial performance metrics (sales, net income, earnings per share, and sales per employee) during that same period.
Thus the most improved relative contribution to ROE over the 10 years was dispersed fairly evenly across the three DuPont ratios for these industry clusters.
8) Do the DuPont ratios correlate more strongly with owner returns than the basic sales, NI, EPS, and S/E metrics?
Fourth, it appears that, of the five DuPont ratios, ROS and ROA exhibit strong correlations in more industry clusters (seven of the 22) than the other DuPont ratios do, and FinLev is the next most highly correlated DuPont measure.
These models regress current-year ROCSE on combinations of prior-year ROCSE, prior-year DuPont ratios based on proportionate consolidation, and/or prior-year DuPont ratios based on the equity method.
Table 4 presents the results of regressions of ROCSE on the combinations of prior-year ROCSE and prior-year DuPont ratios presented below:
2] from regressions of current-year ROCSE (return on common shareholders' equity) on combinations of prior-year ROCSE, prior-year DuPont ratios based on proportionate consolidation (PC), and/or prior-year DuPont ratios based on the equity method (EQ).
The DuPont ratios
in Table 5 show how the company accommodated this extra growth: it used more borrowed money, which increased its leverage ratio, and used its assets more efficiently, which increased its total asset turnover ratio.