Integration of Financial Statement Analysis Techniques
Free CFA Level II lesson in Financial Statement Analysis. 13 min read, ~1,929 words.
Five-component DuPont: Tax burden x Interest burden x EBIT margin x Asset turnover x Equity multiplier = ROE. Interest burden = EBT / EBIT (0 to 1 range), where closer to 1.0 means less debt burden. Not interest coverage (EBIT / Interest expense). Two companies with identical ROE can have...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- integration techniques
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