The focus of DuPont Analysis is to provide management information as to how the firm is using its resources to maximize returns on owners' investments.

Question

Quizplus · Accepted Answer

The statement is true. DuPont Analysis is a financial ratio analysis technique that breaks down the return on equity (ROE) into three components: profit margin, asset turnover, and leverage. This technique helps management understand how efficiently the firm is using its resources to generate profits and maximize returns for owners' investments.

The Focus of DuPont Analysis Is to Provide Management Information