Question 11

SportsLand continually outperforms BaseballWorld in ROE, despite having similar leverage and efficiency. How can the DuPont framework explain this?

Select an answer:

• BaseballWorld carries a higher inventory dollar amount than SportsLand.

• BaseballWorld has a smaller customer base than SportsLand.

• SportsLand is less efficient in generating sales with the assets they have.

• SportsLand is more profitable in generating income given its level of sales.