Computing Return on Equity

Using DuPont analysis, compute return on equity from ratios based on information from a recent Form $10-$K of United Parcel Service Inc. for the year ended December $31.$

Ratio Amount

Asset turnover $(1)0\mathrm{.}45$

Financial leverage $(2)55\mathrm{.}51$

Profit margin $(3)2\mathrm{.}37\%$

$(1)$ Sales$/$Average total assets

$(2)$ Average total assets$/$Average stockholders$$ equity

$(3)$ Net income$/$Sales

Return on equity: Answer $1$

$\%$