Question

QUESTION 1 Which of the following is NOT summarized in the DuPont breakdown? liquidity profitability of sales the degree to w
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Option (a) is correct\

Liquidity a not part of DuPont breakdown. According to DuPont analysis, return on Equity (ROE) is given by:

Return on Equity (ROE) = Profit margin * Total asset turnover * Financial leverage

where,

Profit margin is related to profitability of sales

Total asset turnover is related to firm's ability to generate sales

Financial leverage is related to the degree to which the firm uses creditors for funding.

Add a comment
Know the answer?
Add Answer to:
QUESTION 1 Which of the following is NOT summarized in the DuPont breakdown? liquidity profitability of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 1 In the DuPont breakdown, return on equity is broken down into three areas. Which...

    QUESTION 1 In the DuPont breakdown, return on equity is broken down into three areas. Which of the following is NOT one of those areas? making sure that sales generate profit making sure the firm is liquid making sure the firm generates sales efficiently making sure the firm borrows enough, but not too much

  • QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown...

    QUESTION 1: Which of the following is NOT one of the components in the DuPont breakdown that determines ROE? profit margin total asset turnover equity multiplier times interest earned QUESTION 3: The firm's book value is the depreciated value of the fixed assets on the firm's books the total equity on the balance sheet the total asset value on the balance sheet the total value of liabilities plus equity on the firm's financial statements

  • 10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis...

    10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company's financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm's ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The...

  • 10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis...

    10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company's financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm's ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The...

  • QUESTION 1 The DuPont breakdown occurred in the late 1990's as a financial failure at DuPont...

    QUESTION 1 The DuPont breakdown occurred in the late 1990's as a financial failure at DuPont corporation summarizes critical components of return on equity is a strategy for delaying cash outflows and accelerating cash inflows shows the age in days outstanding of each of the firm's accounts receivable QUESTION 2 Industry norms are available through Valueline Dun & Bradstreet Hoover’s all of these QUESTION 3 If a firm is insolvent, then it is having difficulty servicing its debt obligations its...

  • Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess...

    Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company's financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm's ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The traditional equation is constructed...

  • 10. The DuPont equation Aa Aa E Corporate decision makers and analysts often use a technique...

    10. The DuPont equation Aa Aa E Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company's financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm's ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended...

  • 10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis...

    10. The DuPont equation Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a company’s financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation will deconstruct the firm’s ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The...

  • QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio...

    QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio O C solvency ratio O D. None of the answer choices is correct QUESTION 25 Free cash flow provides an indication of a company's ability to A. generate cash to invest in new capital expenditures @ B. generate cash to pay dividends C. generate cash to invest in new capital expenditures and to pay dividends. D.generate net income QUESTION 26 Which of the following...

  • QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm...

    QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm liquidity of the firm how effectively the firm manages assets to generate sales investor sentiment towards the firm

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT