Question
Which of the following is not true regarding DuPont ROA ratio? (Points : 3) An analysis of the ratio can help pinpoint the cause(s) of
Which of the following is not true regarding DuPont ROA ratio? (Points : 3) An analysis of the ratio can help pinpoint the cause(s) of year to year changes in the ratio Management can use the ratio to determine whether an estimated decrease in total assets, or an increase in sales, will raise the ratio the most The ratio can be used for determining both return on total assets, and determining return on operating assets The formula for ROA is percent gross profit margin multiplied by total asset turnover Analysts may use the return on operating assets ratio variation to analyze operating assets to the sales they helped generate
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