Is Nasdaq Inc Management Utilizing Shareholder Equity Efficiently?

Nasdaq Inc( NDAQ) delivered an above average 13.0% ROE over the past year, compared to the 8.3% return generated by the Financials sector. Nasdaq's results may indicate management is running an efficient business relative to its peers, which may very well be the case, but it is important to understand what ROE is made up of and how it should be interpreted.

Knowing these components may change your view on Nasdaq's performance and future prospects. I show you exactly what I mean in my DuPont analysis below.