Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company's financial performance, as reflected by its retum on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a company's ROE may have changed for better or worse and identify particular company strengths and weaknesses. The DuPont Equation A Dupont analysis is conducted using the Dupont equation, which helps to identify and analyze three important factors that drive a'company's RoE. According to the equation, which of the following factors directly affect a company's roez Check all that apply. Total Assets / Total Common Equity Net income / Saies Sales / Total Assets Most investors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be calculated simaly by dividing a firm's net income by the firm's shareholder's equity, and in can be subdivided into the key factors that drive the ROE. Investors and analysts focus on these drivers to develop a clearer pleture of what is happening within a company. An analyst gathered the following data and calculated the various: terms of the DuPont equation for three companies: Referring to these data, which of the following conclusions will be true about the companies' ROEs? The iasin driver of Company A's inferior ROE, as compared wah that of Company C's ROE, is its higher total dsset turnover ratio. The main driver of Company C's superior ROE, as compared with that of Company A's and Company BS ROE, is its operational efficienc The main driver of Company C's superior AOE, as compsed with that of Company A's and Company B's ROE, is its greater use of debt frrancing