Which of the following is NOT incorporated into the calculation of the Du Pont identity?
A) Return on assets
B) Equity multiplier
C) Total asset turnover
D) Profit margin
E) Receivables turnover

Question

Quizplus · Accepted Answer

The Du Pont identity is a way of breaking down Return on Equity (ROE) into three important components: profit margin, total asset turnover, and the equity multiplier. Receivables turnover is not part of this calculation; it is a measure of how quickly a company collects on its receivables and does not directly factor into the Du Pont analysis.

Which of the Following Is NOT Incorporated into the Calculation