DuPont Analysis Breaks Down Return on Equity into Major Areas

question 9

Multiple Choice

DuPont Analysis breaks down return on equity into major areas that can be used to identify a firm's strengths or weaknesses with respect to

• A) Profitability
• B) Leverage
• C) Liquidity
• D) Efficiency
• E) All of the above are broken out in the basic DuPont equation.

---

Definitions:

Earthquakes

Sudden ground movements or shaking caused by the release of stress accumulated along geological faults or by volcanic activity.

Volcano

A rupture in the planet's surface through which magma, ash, and gases are expelled.

Oil Field

An area underlain by reservoirs containing petroleum and natural gas extractable through drilling.

Volcanoes

Openings in the Earth's crust from which molten rock, ash, and gases are ejected, often forming mountains or craters.