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

Question

Quizplus · Accepted Answer

The DuPont system of analysis, which is also known as the DuPont model, emphasizes that the profit generated by assets can be calculated by multiplying the profit margin by the asset turnover. This model is based on the equation: Return on Assets (ROA) = Net Profit Margin x Asset Turnover. Therefore, the statement is true.

The DuPont System of Analysis Emphasizes That Profit Generated by Assets