Which of the Following Ratios Is Not a Component in the Return

question 146

Multiple Choice

Which of the following ratios is not a component in the return on equity using Due Pont analysis?

• A)asset turnover
• B)profit margin
• C)equity multiplier
• D)current ratio

Utilize gross profit ratio and profit margin to assess operational efficiency.

Apply the concept of net working capital and understand its impact on a company's liquidity.

Understand the significance of cash management ratios like the cash coverage ratio.

Calculate and analyze turnover rates and understand their impact on business operations.

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