Analysis and interpretation question

Dear Mike,

I would like to use the DuPont identity approach to the exam questions on financial statement analysis and interpretation. I was wondering if it is ok to do that since none of the F7 textbooks use this approach, but I, however find this to be a convenient way of systematically approaching financial statement analysis.

Not everyone is aware that this approach is called the DuPont approach, so, just in case, I will briefly describe it:

ROE (Return on Equity)
is
ROA (Return on Assets) x Equity multiplier (Assets/Equity)

next. ROA is:
Profit Margin x Asset Turnover

next, Profit margin is:
Net income / Sales

and Asset Turnover is:
Sales/Assets

Could you please let me know what you think?

Many thanks,
Valentina