Which of the following is not a ratio in the DuPont System?
A) Equity multiplier
B) Return on equity
C) Net profit margin
D) Debt to equity ratio
E) Asset turnover ratio

Question

Quizplus · Accepted Answer

The DuPont System of financial analysis breaks down Return on Equity (ROE) into three components: net profit margin, asset turnover, and equity multiplier. The debt to equity ratio, while related to the equity multiplier, is not a part of the DuPont analysis itself.

Which of the Following Is Not a Ratio in the DuPont