Question

    The DuPont Analysis uses the following ratios

    except:
    A Debt ratio Correct Answer Incorrect Answer
    B Profit margin Correct Answer Incorrect Answer
    C Total asset turnover Correct Answer Incorrect Answer
    D Financial Leverage Correct Answer Incorrect Answer
    E All of the above are used Correct Answer Incorrect Answer

    Solution

    The DuPont Analysis is a financial performance measurement technique that breaks down the return on equity (ROE) into various components to assess the factors driving profitability. It utilizes three key ratios: profit margin, total asset turnover, and financial leverage.

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