Current ratio Quick ratio Cash ratio Total debt ratio Equity multiplier Times interest earned (TIE) ratio Inventory turnover Day's sales in inventory Receivables turnover Day's sales in receivables Total assets turnover Profit margin Return on assets (ROA) Return on equity (ROE) Price/Earnings ratio (P/E) Market-to-book ratio 2021 2022 Short-Term Solvency (Liquidity) Long-Term Solvency (Financial Leverage) Asset Management (Turnover) 2 Profitability Market Value Ratios Industry 1.15 0.5 0.2 0.35 1.54 4.25 4.6 79.35 12.5 30 0.71 17.06% 12.11% 18.65% 12.75 2.25 Rating Question 7 (2 point). Verify that the Dupont Identity hold in this case. (i.e., show that Return on equity = Profit margin x Total asset turnover x Equity multiplier). What is the main factor that leads to the change in ROE in this case?

Question 7 ( 2 point). Verify that the Dupont Identity hold in this case. (i.e., show that Return on equity = Profit margin x Total asset turnover Equity multiplier). What is the main factor that leads to the change in ROE in this case? Question 7 ( 2 point). Verify that the Dupont Identity hold in this case. (i.e., show that Return on equity = Profit margin x Total asset turnover Equity multiplier). What is the main factor that leads to the change in ROE in this case