Assets tells us how efficient and effective assets are used within the firm. The mathematical equation for ROA is:

The Dupont Model ROA = Net Income/Net Sales x Net Sales/~total assets = Net Income/~total assets. Therefore, Net Profit Margin x Total Asset Turnover = ROA As you can see, if you substitute numbers within this equation, you can just simply...mathematically...cross out net sales on each side of the equation and simply divide Net Income into ~ total assets for your answerfor example; 75,000/125,000 x 125,000/200,000 = 75,000/200,000 = .375 or 37.5%...either way...you will have the same results, whether you cross tabulate or not. For example, 75,000/125,000 x 125,000/200,000 = .6 x .625 = .375 or 37.5% if this is the case, should we go through the entire formula? Why or why not?