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Return on Investment (ROI) also known as Return on Assets (ROA) is known as the broadest measure of profitability as it takes into account how
Return on Investment (ROI) also known as Return on Assets (ROA) is known as the broadest measure of profitability as it takes into account how well a company used its assets to generate profit (net income). However, it is often argued that net income may not be sufficient to measure a companys profitability. Therefore, the development of the DuPont Model was established. Discuss thoroughly the premise of the DuPont Model in comparison to ROI/ROA and if either measure of profitability is more advantageous than the other.
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