A grocer would have higher inventory turnover compared with a jewelry store. A jeweler would be expected to have higher profit margins.

(a) Which indicates that a grocer would be more profitable

(b) Which indicates that a jeweler would be more profitable

(c) If we multiply asset turnover by profit margin, it equals return on assets, which would tell us which is more profitable

(d) none of these are true

The DuPont ratio

(a) Breaks return on assets into component parts, giving us keen insights into profitability, asset usage, and the use of leverage

(b) Breaks return on equity into component parts, giving us keen insights into profitability, asset usage, and the use of leverage