DuPont Analysis
| DuPont Formula : DuPont break the formula for ROE and ROA and provide more detailed view to the management. | |||||||||
| Return on equity = | Net income/Total equity | ||||||||
| = | (Net income/total sales)*(Total sales/Total asset)*(total asset/Total equity) | ||||||||
| = | Net margin*Asset turn over * equity multiplier | ||||||||
| = | Return on Asset * equity multiplier | ||||||||
| Return on Asset = | Net income/Asset | ||||||||
| = | (Net income/total sales)*(total sales/total asset) | ||||||||
| = | Net margin*Asset turnover | ||||||||
| = | ROE/Equity multiplier | ||||||||
Get Answers For Free
Most questions answered within 1 hours.