The DuPont model for calculating ROI contains which of the following components?
A)Margin and asset turnover
B)Asset turnover and net income
C)Margin and operating assets
D)Net income and asset turnover

Question

Quizplus · Accepted Answer

The DuPont model calculates Return on Investment (ROI) by multiplying margin (Net Profit Margin) and asset turnover (Asset Turnover Ratio), breaking down ROI into these two components to analyze a company's financial performance more deeply.

The DuPont Model for Calculating ROI Contains Which of the Following