Apply DuPont Disaggregation of ROE
Selected balance sheet and income statement information for Facebook Inc. follows.
a Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage.
Note: Select the appropriate numerator and denominator used to compute ROE from the dropdown menu options. Enter the numerator and denominator amounts
to compute ROE.
Note: Select the appropriate numerator and denominator used to compute ROA from the dropdown menu options. Enter the numerator and denominator amounts
to compute ROA.
Note: Select the appropriate numerator and denominator used to compute Financial Leverage from the dropdown menu options. Enter the numerator and
denominator amounts to compute Financial Leverage.
b Disaggregate ROA into Profit Margin and Asset Turnover components.
Note: Select the appropriate numerator and denominator used to compute Profit Margin from the dropdown menu options. Enter the numerator and denominator
amounts to compute Profit Margin.
Note: Select the appropriate numerator and denominator used to compute Asset Turnover from the dropdown menu options. Enter the numerator and denominator
amounts to compute Asset Turnover.