The method of calculating return on assets which highlights the importance of sales,profit margin and asset turnover is known as

Question

Quizplus · Accepted Answer

The method described in the question is commonly known as DuPont analysis, which breaks down the return on assets into three components: operating efficiency represented by profit margin, asset utilization represented by asset turnover, and financial leverage. Therefore, the best choice is B) DuPont analysis.

The Method of Calculating Return on Assets Which Highlights the Importance