Return on equity (ROE)by the Du Pont model provides insight with respect to a company's use of its assets.

Question

Quizplus · Accepted Answer

The Du Pont model breaks down the return on equity (ROE) into three components: net profit margin, asset turnover, and financial leverage. By analyzing these three components, it provides insights into how effectively a company is using its assets to generate profits. Therefore, the statement is true.

Return on Equity (ROE)by the Du Pont Model Provides Insight