The _____ breaks down return on equity into three component parts.
A: Du Pont identity
B: return on assets
C: statement of cash flows
D: asset turnover ratio
E: equity multiplier
A: Du Pont identity
B: return on assets
C: statement of cash flows
D: asset turnover ratio
E: equity multiplier
举一反三
- The formula which breaks down the return on equity into three component parts is referred to as which one of the following? ( ) A: equity equation B: profitability determinant C: SIC formula D: Du Pont identity
- The DuPont method return on assets uses two component ratios. What are they? A: inventory turnover gross profit margin B: times interest earned debt ratio C: return on equity dividend payout D: net profit margin total asset turnover
- According to the DuPont analysis system, the indicator that has no effect on the return on net assets is ( ). A: Equity multiplier B: Net profit rate of sales C: Quick ratio D: Turnover of total assets
- When the return on equity equation (ROE) is decomposed using the original DuPont system, what three ratios comprise the components of ROE（） A: Gross profit margin, asset turnover, equity multiplier. B: Net profit margin, asset turnover, asset multiplier. C: Net profit margin, asset turnover, equity multiplier.
- The statement of cash flows reports: A: Revenues and expenses B: Assets and liabilities C: Cash inflows and cash outflows D: Changes in equity