Multiple choice

In ratio analysis, Du-Pont Control Chart shows the relationship of _______________ and ______________ for calculation of return on total investment ratio (ROI).

  1. Liquid Assets and Current Liabilities

  2. Current asset and current liabilities

  3. Net profit margin ratio and total investment turnover ratio

  4. Cash flow from operations and Net Profit of Company

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In ratio analysis Du-Pont Control Chart shows the relationship of net profit margin ratio and total investment turnover ratio for calculating return on total investment ratio (ROI). If company wants to increase return on investment(ROI), it has to concentrate to increase net profit margin and total investment turnover ratio.

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