The DuPont equation relates a firm's net profit margin, total asset turnover ratio, and equity multiplier to determine its return on equity.

Name: The DuPont equation relates a firm's net profit margin, total asset turnover ratio, and equity multiplier to determine its return on equity.
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The DuPont equation is a widely used financial ratio formula that decomposes the return on equity (ROE) measure into three components – net profit margin, total asset turnover ratio, and equity multiplier.

The DuPont Equation Relates a Firm's Net Profit Margin, Total