Question

The DuPont Analysis uses the following ratios except:

A Debt ratio Correct Answer Incorrect Answer
B Profit margin Correct Answer Incorrect Answer
C Total asset turnover Correct Answer Incorrect Answer
D Financial Leverage Correct Answer Incorrect Answer

Solution

The DuPont Analysis is a financial performance measurement technique that breaks down the return on equity (ROE) into various components to assess the factors driving profitability. It utilizes three key ratios: profit margin, total asset turnover, and financial leverage.

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