Dupont Analysis: Company A and Company B each had a return on assets (ROA) of 5.2% in 2015. However Company B's return on equity (ROE) is twice as high as Company A's ROE. Which of the following statements is Correct?
Company B has a higher ratio of total assets to equity than Company A.
Company A has more working capital liquidity than Company B.
Company B has a lower equity multiplier than Company A.
Company A & B have the same equity multiplier.