The Du Pont System helps the analyst see how a firm's decisions and activities over an accounting period interact to produce an overall return to the firm's shareholders, the return on equity.

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The Du Pont System is a tool used to analyze a firm's return on equity by breaking it down into its components: net profit margin, asset turnover, and financial leverage. It helps analysts see how a firm's decisions and activities affect each component and ultimately the overall return to shareholders.

The Du Pont System Helps the Analyst See How a Firm's