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Find the critical point(s) of the function. Then use the second derivative test to classify the nature of each point, if possible. Finally, determine the relative extrema of the function.
Equity Multiplier
A measure of a company's financial leverage, calculated as total assets divided by total equity, indicating how much of assets are financed by equity.
Du Pont Identity
A framework for analyzing a company's return on equity (ROE) by breaking it down into three components: operating efficiency, asset use efficiency, and financial leverage.
Total Asset Turnover
A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.
Statement of Cash Flows
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.
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