DuPont analysis can reveal if an organization's low ROE is due to which of the following factors?

Question

Quizplus · Accepted Answer

DuPont analysis breaks down ROE into three components: profit margin (which can be affected by poor pricing and excessive expenses), asset turnover (related to under-performing assets), and financial leverage (related to under-utilization of debt). Therefore, all these factors can contribute to a low ROE.

DuPont Analysis Can Reveal If an Organization's Low ROE Is