Which of the following expresses DuPont analysis?
A) net profit margin = total asset turnover times return on assets
B) total asset turnover = operating asset turnover times financial leverage
C) return on assets = net profit margin times total asset turnover
D) return on investment = return on equity (1 - tax rate)
E) dividend yield = dividend payout times earnings per share

Question

Quizplus · Accepted Answer

DuPont analysis breaks down return on assets (ROA) into two components: net profit margin and total asset turnover, showing how profitability and efficiency contribute to ROA.

Which of the Following Expresses DuPont Analysis