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DuPont analysis, what is the year-over-year change in Zorons return on equity (ROE)?

Question

DuPont analysis, what is the year-over-year change in Zorons return on equity (ROE)?

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Solution

DuPont analysis is a framework used to analyze the components of return on equity (ROE) by breaking it down into three key components: profit margin, asset turnover, and financial leverage. To calculate the year-over-year change in Zorons ROE, you'll need the following information:

  1. ROE for the current year: This can typically be derived from financial statements.
  2. ROE for the previous year: Similar to the current year, this information will come from financial documents.

Steps to Calculate Year-over-Year Change in ROE:

  1. Obtain ROE Values:

    • Find the ROE for the current year (let’s call this ROE_current).
    • Find the ROE for the previous year (let’s call this ROE_previous).
  2. Calculate the Change:

    • Use the formula for year-over-year change: \text{Year-over-Year Change} = \frac{\text{ROE_current} - \text{ROE_previous}}{\text{ROE_previous}} \times 100
  3. Interpret the Result:

    • A positive percentage indicates an increase in ROE, while a negative percentage indicates a decrease.

Make sure to replace ROE_current and ROE_previous with the actual figures from Zoron’s financial data. If you have specific values for the ROE in the given years, I can help further with the calculations. Otherwise, this formula will guide you in determining the year-over-year change in Zorons' ROE.

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