Question

The DuPont formula is: Select one: A. Return on Assets x Asset Turnover (Asset Utilization) B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization) C. Return on Equity x Debt-to-Equity Ratio D. Return on Investment x Debt-to-Equity Ratio E. None of the above

Answer 1

B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization)

Step-by-step explanation:

The DuPont formula is Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization). Under Du Pont Analysis, ROI (Return on assets ) = Profit Margin * Assets turnover