Sources of earnings and ROE: For analytical purposes, the analyst should remove the equity income rom associates from the DuPont analysis? Why? With the equity method, the total asset turnover is higher? Why?
DuPont measures a specific company, we assume the equity income is a passive investment and to be comparable with the DuPont use only core earnings etc. equity income might NOT be core with equity method you report the share of net assets and report on the BS = more assets but on the income statement you report your share of income only Rev/Total Assets = same for equity and prop consolidation but for CONSOLIDATION you take all the assets and all the revenue which is lower asset turnover is higher COMPARED to consolidation