[Verse 1] When shareholders ask how their money's been used There's a method that cannot be confused ROE tells the story but not the whole tale Three components reveal where you succeed or fail Net income over equity's the start But DuPont breaks it into component parts [Chorus] Profit margin times asset turnover times equity multiplier Three drivers working together, making returns fly higher How much you keep, how fast you turn, how much you amplify DuPont analysis shows you why your ROE can touch the sky Margin, turnover, leverage too That's how we break ROE through [Verse 2] First component is the profit margin test Net income over sales revenue's the quest It measures how much profit you retain From every dollar that flows through your domain Cost control and pricing power shine In this efficiency bottom line [Chorus] Profit margin times asset turnover times equity multiplier Three drivers working together, making returns fly higher How much you keep, how fast you turn, how much you amplify DuPont analysis shows you why your ROE can touch the sky Margin, turnover, leverage too That's how we break ROE through [Verse 3] Asset turnover is the second key Sales revenue over assets shows velocity How efficiently you use what you own To generate sales and make profits grown Inventory turns and receivable days Impact this ratio in powerful ways [Bridge] Equity multiplier completes the chain Total assets over equity's the gain Financial leverage amplifies return But higher risk is what stakeholders learn Debt versus equity financing choice Gives this final ratio its voice [Chorus] Profit margin times asset turnover times equity multiplier Three drivers working together, making returns fly higher How much you keep, how fast you turn, how much you amplify DuPont analysis shows you why your ROE can touch the sky Margin, turnover, leverage too That's how we break ROE through [Outro] When ROE changes year to year DuPont shows which driver's the premier Operational or financial might Three components bring insight to light
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