Return on equity and investment turnover are the components of the expanded return on investment [ROI] formula that enables management to identify ways of improving the ROI.

Question

Quizplus · Accepted Answer

The expanded return on investment (ROI) formula, also known as the DuPont formula, breaks down ROI into three components: net profit margin, asset turnover, and financial leverage, not return on equity and investment turnover.

Return on Equity and Investment Turnover Are the Components of the Expanded