Which one of these measures a firm's operating and asset use efficiency as well as its financial leverage?
A)Equity multiplier
B)Capital intensity ratio
C)DuPont identity
D)Profit margin
E)Return on assets

Question

Quizplus · Accepted Answer

The DuPont identity measures a firm's operating efficiency through its profit margin, asset use efficiency through its return on assets, and financial leverage through its equity multiplier. Therefore, it includes all three components mentioned in the question.

Which One of These Measures a Firm's Operating and Asset