📊 DuPont Analysis Calculator
Break down ROE into key components
How to Use This Calculator
1
Enter financials
Provide net income, sales, total assets, and equity for the period.
2
Calculate
We compute ROE and each DuPont component.
3
Analyze
Identify whether profitability, efficiency, or leverage drives ROE.
Formula
ROE = (NI/Sales) × (Sales/Assets) × (Assets/Equity)
Components: Profit Margin × Asset Turnover × Equity Multiplier
About DuPont Analysis
DuPont analysis decomposes ROE into profitability, efficiency, and leverage, helping pinpoint performance drivers.
Tips
- Use averages (e.g., average assets/equity) for multi-period accuracy
- Compare components to peers and historical values
- Beware of temporary spikes due to one-time items
Frequently Asked Questions
Which period should I use?
Use consistent periods (e.g., trailing twelve months) for all inputs.
Gross or net sales?
Use net sales consistent with how net income is reported.
Average or end-of-period balances?
Average assets/equity are preferred for turnover and multiplier.