contestada

Below are the DuPont analyses of 2012 and 2013 for Company X
RETURN ON EQUITY (ROE)
PROFIT
MARGIN
X
ASSET
TURNOVER
Х
LEVERAGE
2012
10.55%
2.60%
1.33
3.051
2013
11.74%
1.80%
2.27
2.873
Based on the breakdown of the DuPont framework, which of the following statements is true regarding
Company X?
Company X is more profitable in 2013 than in 2012.
O Company X has more assets in 2013 than in 2012
Company X has a lower assets to equity ratio in 2013 than in 2012.

Respuesta :

Answer:

Company X has a lower assets to equity ratio in 2013 than in 2012.

Explanation:

As we can see from the data provided that the profit margin goes falls from 2013 to 2012

Moreover, the asset turnover ratio also falls so it would not be chosen

The last statement is true as debt is falls equity risen that represents assets to equity ratio

Hence, the last statement is true

Otras preguntas