Which two ratios are used in the DuPont system to create return on assets?
A) Return on assets and asset turnover
B) Profit margin and asset turnover
C) Return on total capital and profit margin
D) Inventory turnover and return on fixed assets

Question

Quizplus · Accepted Answer

The DuPont system uses the ratio of profit margin (net income divided by total revenue) and asset turnover (total revenue divided by average total assets) to create return on assets.

Which Two Ratios Are Used in the DuPont System to Create