The three basic ratios used in the DuPont system of analysis are ________.
A) net profit margin, total asset turnover, and return on investment
B) net profit margin, total asset turnover, and return on equity
C) net profit margin, total asset turnover, and equity multiplier
D) net profit margin, financial leverage multiplier, and return on equity

Question

Quizplus · Accepted Answer

The DuPont system breaks down return on equity (ROE) into three components: net profit margin, total asset turnover, and equity multiplier.

The Three Basic Ratios Used in the DuPont System of Analysis