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The DuPont formula is: Select one: A. Return on Assets x Asset Turnover (Asset Utilization) B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization) C. Return on Equity x Debt-to-Equity Ratio D. Return on Investment x Debt-to-Equity Ratio E. None of the above

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Tundexi

Answer:

B. Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization)

Explanation:

The DuPont formula is Profit Margin (Return on Sales) x Asset Turnover (Asset Utilization). Under Du Pont Analysis, ROI (Return on assets ) = Profit Margin * Assets turnover

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