The dupont identity can be used to managers answer which of the following questions related to a company’s operations? i. how many sales dollars are being generated per each dollar of assets? ii. how many dollars of assets have been acquired per each dollar in shareholders' equity? iii. how much net profit is being generating per dollar of sales? iv. does the company have the ability to meet its debt obligations in a timely manner?

The correct answer is I, II and III only.

Explanation:

The DUPONT system integrates or combines the main financial indicators in order to determine the efficiency with which the company is using its assets, its working capital and the capital multiplier (Financial leverage).

In principle, the DUPONT system brings together the net profit margin, the turnover of the total assets of the company and its financial leverage.

These three variables are responsible for the economic growth of a company, which obtains its resources either from a good profit margin in sales, or from an efficient use of its fixed assets which implies a good rotation of these, the same that the effect on the profitability of financial costs due to the use of financed capital to develop its operations.

Starting from the premise that the profitability of the company depends on two factors such as the profit margin on sales, the rotation of assets and financial leverage, it can be understood that the DUPONT system does is identify the way in which The company is obtaining its profitability, which allows it to identify its strengths or weaknesses.

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answer; organization;