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Financial Ratios
Financial Ratios
Easy
Marlow Industries reports net income of $12.5 million, revenue of $95 million, total assets of $180 million, and total equity of $72 million. Using the 3-component DuPont decomposition, which factor contributes most to Marlow's ROE?
A
Financial leverage (equity multiplier of 2.50x)
B
Profitability (net profit margin of 13.2%)
C
Efficiency (asset turnover of 0.53x)
D
All three contribute equally
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Tags
#dupont-analysis
#roe-decomposition
#equity-multiplier
#financial-leverage
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