The DuPont system of analysis emphasizes that profit generated by assets can be derived by a combination of profit levels and how fast an asset can turnover.

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The DuPont system of analysis assesses the return on assets (ROA) by breaking it down into two components: profit margin (net income/sales) and asset turnover (sales/total assets). Profit generated by assets can be derived by a combination of profit levels and how fast an asset can turnover.

The DuPont System of Analysis Emphasizes That Profit Generated by Assets