Examlex
Which of the following is not a derivative security?
Du Pont Identity
A formula that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.
Profit Margin
A financial ratio that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in generating profit.
Operating Profit Margin
A profitability ratio calculated as operating income divided by revenue, indicating the percentage of revenue that is left over after paying for variable costs of production.
Cost of Goods Sold
Expenses directly incurred from the production of a company's sold goods, involving the cost of labor and materials.
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