Which of the Following Are Not Part of the Components

question 31

Multiple Choice

Which of the following are not part of the components of the DuPont system for measuring and evaluating business performance?

• A) Return on sales.
• B) Residual income.
• C) Return on investment.
• D) Capital turnover.
• E) Number of patents.

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Definitions:

Net Profit Margin

A financial performance metric that shows the percentage of sales that has turned into profits, calculated by dividing net profit by revenue.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate a company's financial health and growth prospects.

Quick Ratio

A liquidity indicator that evaluates a company's ability to pay its current liabilities without relying on the sale of inventory, calculated as (current assets - inventory) / current liabilities.