As per extended Du Pont analysis: ROE = NPM × TATR × x/y Where, ROE = Return on Equity NPM = Net Profit Margin TATR = Total Asset Turnover Ratio…

CA Intermediate · Financial Management and Strategic Management · RTP · January 2026
As per extended Du Pont analysis: ROE = NPM × TATR × x/y Where, ROE = Return on Equity NPM = Net Profit Margin TATR = Total Asset Turnover Ratio Here, x/y represents:
(A) Debt / Equity
(B) Total Assets / Sales
(C) Total Assets / Equity
(D) Equity / Debt

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Total Assets / Equity

Topics: Part-A: Financial Management

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