CFA Level I sample question

CFA Level I Financial Analysis Techniques question

Financial Statement Analysis / Financial Analysis Techniques

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Financial Analysis Techniques sample question

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Financial Statement Analysis

Financial Analysis Techniques

An analyst compares two companies with identical ROE. Company X reports net income of USD 90 million on revenue of USD 1,500 million, average assets of USD 1,000 million, and average equity of USD 600 million. Company Y reports net income of USD 60 million on revenue of USD 1,200 million, average assets of USD 800 million, and average equity of USD 400 million. Based on a DuPont decomposition, the analyst most appropriately concludes that:

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