The correct answer is: C. Overall performance
A Du Pont chart is a financial analysis tool that breaks down return on equity (ROE) into three components: profit margin, asset turnover, and financial leverage. This allows investors to see how a company is using its assets to generate profits, and how much debt it is using to finance its operations.
Capital structure is the mix of debt and equity financing that a company uses. Liquidity position is a company’s ability to meet its short-term obligations. Movement in share prices is the change in the price of a company’s stock over time.
While these are all important aspects of financial analysis, they are not directly related to ROE. ROE is a measure of a company’s profitability, and it is the most important metric that investors use to evaluate a company’s performance.