The process of decomposing ROE into a series of component ratios is called ________.
A) DuPont analysis
B) technical analysis
C) comparative analysis
D) liquidity analysis

Question

Quizplus · Accepted Answer

The process of decomposing ROE into component ratios is called DuPont analysis. This analysis breaks down ROE into its constituent parts: net profit margin, total asset turnover, and financial leverage.

The Process of Decomposing ROE into a Series of Component