As securities analyst for Riordan Manufacturing Company, I was assigned the role to carefully analyze and compare their financial data. Utilizing both their income statement and balance sheet for its fiscal years 2003 and 2002, I was able to successfully conduct a Du Pont analysis and determine the Return on Equity for both years.
The initial step involved focusing on the the Du Pont system of analysis. Return on total assets as described through the two components of profit margin and asset turnover is part of the Du Pont system of analysis. …
