Improving the Coverage of the DuPont Approach of Financial Analysis in Finance Courses Through the Use of the Net Leverage Multiplier

Authors

Robert J. Angell
Betty L. Brewer

Abstract

This paper points out a deficiency in the coverage of the DuPont system of financial analysis in most finance textbooks and provides an alternative that more accurately aligns the analytical measures to the factors affecting a firm’s return on equity. Furthermore, we analyze data on firms to determine the extent to which the recommended alternative differs from the “standard” measures.

Recommended Citation

Angell, Robert J. and Brewer, Betty L. (2003) "Improving the Coverage of the DuPont Approach of Financial Analysis in Finance Courses Through the Use of the Net Leverage Multiplier," Journal of Economics and Finance Education: Vol. 2: Iss. 2, Article 1.
Available at: https://scholarship.rollins.edu/jefe/vol2/iss2/1