Accounting · DuPont Analysis
Delta Heavy Equipment Ltd.'s financial statement analysis for the year 2025 yields the following ratios: Return on Equity (ROE): 20% | Total Assets Turnover Ratio (TATR): 1.5 times | Net Profit Margin (NPM): 10% | Total Debt to Total Assets Ratio: 40% Using the DuPont Analysis framework, what is the firm's Equity Multiplier (Leverage Ratio) and its implied Return on Assets (ROA)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Equity Multiplier: 1.67 times; Return on Assets: 15.0 percent
- 2Equity Multiplier: 2.00 times; Return on Assets: 10.0 percent
- 3Equity Multiplier: 1.67 times; Return on Assets: 15.0 percent✓
- 4Equity Multiplier: 1.67 times; Return on Assets: 16.7 percent
Correct answer
Equity Multiplier: 1.67 times; Return on Assets: 15.0 percent
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice DuPont Analysis MCQs →Want more practice questions on DuPont Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · DuPont Analysis