Areas of analysis are combined in modified dupont formula

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Financial ratio analysis is often divided into five areas: liquidity, activity, debt, profitability, and market ratios. Differentiate each of these areas of analysis from the others and give and define examples of each. Which is of the greatest concern to creditors?

What three areas of analysis are combined in the modified DuPont formula? Explain how the DuPont system of analysis is used to dissect the firm’s results and isolate their causes.

Reference no: EM131308242

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