DuPont analysis recognizes that the return on equity can be broken down into three aspects, which include all of the following except
A)net profit percentage.
B)total leverage.
C)total liquidity.
D)asset turnover ratio.

Question

Quizplus · Accepted Answer

DuPont analysis recognizes three aspects of return on equity: net profit percentage (profit margin), asset turnover ratio, and total leverage (or equity multiplier). Total liquidity is not considered as one of the aspects of DuPont analysis.

DuPont Analysis Recognizes That the Return on Equity Can Be