The focus of DuPont Analysis is to provide management information as to how the firm is using its resources to maximise returns on owners' investments.

Question

Quizplus · Accepted Answer

This statement is true. DuPont Analysis breaks down the return on equity into its component parts, which provides insight into which aspects of the business are driving profitability and how effectively the company is using its resources.

The Focus of DuPont Analysis Is to Provide Management Information