Topic > Dupont Analysis Case - 727

A higher interest expense ratio in the year 2014 means that the company has lower interest expenses and a higher EBT in the year 2014 compared to the year 2013. An EBIT margin higher in the year 2014 means more efficient cost management or more profitable business in the year 2014 compared to the year 2013. Higher earnings per share in the year 2014 means the company is more profitable and has more profits to distribute to its shareholders and has higher growth prospects in the year 2014 compared to the year 2013. A higher ROE in the year 2014 means that a higher net income is generated for each ringgit of common shares invested in the year 2014 compared to the year 2013. A higher ROE in the year 2014 means that the company has a higher rate of return flowing to the shareholders as the company has a higher return on assets, net profit margin, asset turnover , financial leverage, tax burden ration, interest burden ration, EBIT margin and earnings per share. Analyzing ROE using DuPont analytics will allow you to look deeper into the number and identify which component of the business is actually doing well