The DuPont system allows a firm to break its return on equity into a profit-on-sales component,an efficiency-of-asset-use component,and a liquidity component.

Name: The DuPont system allows a firm to break its return on equity into a profit-on-sales component,an efficiency-of-asset-use component,and a liquidity component.
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The DuPont system breaks down return on equity into three components: profit margin, asset turnover, and financial leverage, not liquidity.

The DuPont System Allows a Firm to Break Its Return