Explain how the DuPont identity allows us to evaluate a firms performance.

Question:

Explain how the allows us to evaluate a firm’s performance.

DuPont Identity
The DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...