The DuPont system of analysis emphasizes that profit generated by assets can be derived by various combinations of profit margins and asset turnover.

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The DuPont system of analysis is based on the idea that the return on equity can be broken down into three components: profit margin, asset turnover, and financial leverage. The system emphasizes that profit generated by assets can be derived by various combinations of profit margins and asset turnover.

The DuPont System of Analysis Emphasizes That Profit Generated by Assets