Anyone have clever acronyms or ways to remember the two DuPont calculations for ROE?作者: cyber21 时间: 2011-7-11 18:42
no need.... start with profit margin... then the denominator becomes the numerator and so forth....until you reach the equity multiplier作者: Londonrocks 时间: 2011-7-11 18:42
here's mine:
You need to know NPATOL which stands for net profit margin x asset turnover x leverage
I have memorized it as NOT PROFITABLE AT ALL. The rhyme and the prononciation should remind you of the formula.
In order to remember the long composition, remember that the last 2 remain and the only thing that expands is NP. The longer form also starts with NP and remember the denominator of the first part of the equation is always the numerator of the following equation:
