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Du Pont Equation
A formula that breaks down the components of a company's return on equity into three parts: operating efficiency, asset use efficiency, and financial leverage.
ROE
Return on Equity; a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.
Sales
The total amount of goods or services sold by a company, a primary source of revenue for businesses.
Net Income
The profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.
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