DuPont Analysis Breaks Return on Assets into Net Profit Margin

question 56

True/False

DuPont analysis breaks return on assets into net profit margin and borrowing capacity.

---

Definitions:

Accounts Payable

Liabilities owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving insight into its financial health.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in a net profit or loss.

Statement of Stockholders' Equity

A financial document that shows changes in the value of a company's equity over a specific period.