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The problem reads as follows (DuPont Analysis): Total asset turnover, and return on assets have direct influence on Net Profits, therefore these ratios are reviewed

The problem reads as follows (DuPont Analysis):

Total asset turnover, and return on assets have direct influence on Net Profits, therefore these ratios are reviewed together in the form of DuPont Analysis. Return on Assets is broken into Net Profit Margin and Asset Turnover ratio shown as under:

Return on assets 2011 = Net profit margin x Asset turnover ratio

= 6.07% x 1.11

= 10.42

Where did the 10.42 come from? I came up with 6.74%

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