alleryStart learning →A grocery chain has thin margins but sells many times its assets yearly. Which DuPont driver matters most?
AAsset turnover
BEquity multiplier
CDividend payout
DInterest burden
Answer & Solution
Correct answer: A. Asset turnover
Groceries have very high turnover, so ROE depends heavily on how many times assets are sold through.
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Sales rose from Rs 8,00,000 to Rs 10,00,000. A horizontal analysis shows what percentage iSales are Rs 15,00,000 and average total assets Rs 5,00,000. Asset turnover?Average total assets are Rs 12,00,000 and average equity is Rs 4,00,000. Equity multiplierIn a common-size income statement, net profit is Rs 2,00,000 and gross sales Rs 10,00,000.Gross profit is Rs 3,00,000 on revenue of Rs 12,00,000. Gross profit ratio?A firm's D/E ratio is 1.5. Its debt-to-capital ratio is?Debt is Rs 6,00,000 and equity is Rs 3,00,000. What is the debt-to-equity ratio?Net income is Rs 90,000 and average shareholders' equity is Rs 6,00,000. ROE?