The DuPont System shows how operating and financial leverage impact the firm’s Return on Equity, ROE. Access the following link and read “ROE And ROA Give Clear Picture of Corporate Health.” Explain why ROE may give a false impression of the firm’s performance.
Source:
ROA and ROE give clear picture of corporate health: Ben McClure. Retrieved from https://www.investopedia.com/articles/basics/05/052005.asp