Orion Logistics has the following ratios: Net profit margin: 7.5% Total asset turnover: 2.4 Equity multiplier: 3.2 Calculate the Return on Equity (ROE) using the DuPont formula.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
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Orion Logistics has the following ratios:
Net profit margin: 7.5%
Total asset turnover: 2.4
Equity multiplier: 3.2
Calculate the Return on Equity (ROE) using the DuPont
formula.
Transcribed Image Text:Orion Logistics has the following ratios: Net profit margin: 7.5% Total asset turnover: 2.4 Equity multiplier: 3.2 Calculate the Return on Equity (ROE) using the DuPont formula.
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