The DuPont model for calculating ROI contains which of the following components?
A)Margin
B)Asset turnover
C)Both margin and asset turnover.
D)Neither margin nor asset turnover.

Question

Quizplus · Accepted Answer

The DuPont Model for calculating ROI includes both Margin and Asset Turnover. Margin refers to the profit margin, which is the ratio of net income to sales. Asset Turnover, on the other hand, refers to the efficiency of asset use in generating sales. By multiplying these two ratios together, we can calculate the Return on Investment (ROI) for a company.

The DuPont Model for Calculating ROI Contains Which of the Following