Suppose you calculate a return on fixed assets of 20% for 2008 and 15% for 2009 for a company. Explain how you would use the DuPont system to further investigate this change in the return on fixed asset ?
In examining the trend of returns on assets over a 20-year period for a company, you find that the returns have been declining gradually over this period. What information would you look at to further explain this trend?