Using DuPont analysis,what are the components of return on assets?

Question

Quizplus · Accepted Answer

Return on assets is calculated using DuPont analysis as follows: Return on assets = (Net profit margin) x (Total asset turnover ratio). Net profit margin is determined by dividing net income by sales, while total asset turnover ratio is calculated by dividing sales by total assets. Therefore, the components of return on assets are return on sales (net profit margin) and total asset turnover ratio. The debt ratio and leverage ratio are not included in the calculation of return on assets using DuPont analysis.

Using DuPont Analysis,what Are the Components of Return on Assets