The DuPont equation shows the relationships among asset management, debt management, and ratios. Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is: ROE = Profit margin Total assets turnover Equity multiplier Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers. factors also need to be considered. Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Income Statements: What is the firm's 2019 current ratio? Round your answer to two decimal places. The 2019 current ratio indicates that Rosnan has current assets to meet its current obligations as they come due. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places. Hide Feedback Correct Theck My Work Feedback Review the total assets turnover ratio definition and equation. Realize that information will come from both the firm's balance sheet and income statement. Make sure that you use 2019 data and not 2018 data. Given the 2019 current and total assets turnover ratios calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. % If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a What is the firm's 2019 profit margin? Round your answer to two decimal places. What is the firm's 2019 profit margin? Round your answer to two decimal places. % cushion than indicated by the industry average. Hide Feedback Correct Check My Work Feedback Review the profit margin definition and equation. Realize that information will come from the firm's income statement. Make sure that you use 2019 data and not 2018 data. Make sure that you include the correct type of income in the numerator. If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-capital ratio might be one reason for its high profit margin. What is the firm's 2019 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places. %