Chapter 3 - Fundamental interpretations made from financial statement data. After reading this chapter, you should be able to answer the following questions: Why are financial statement ratios important? How is return on investment calculated and why is it important? What is the DuPont model and what do margin and turnover mean? What is the significance of return on equity and how is it calculated?. | Lecture Accounting: What the numbers mean (10/e): Chapter 3 - Marshall, McManus, Viele