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DuPont Analysis breaks ROE into three components: profit margin × asset turnover × leverage, revealing operational and financial drivers.

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Input net income, revenue, assets, equity
  2. 2Calculate each ratio
  3. 3Analyze which components drive overall ROE

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
High-margin retailer vs. high-turnover grocery
ଫଳ
Same ROE achieved differently; understand business model differences
Fundamental analysis tool

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Ignoring leverage effect (riskiness)
  • Not comparing to industry peers

ବାରମ୍ବାର ଜିଜ୍ଞାସା

Which component is most important?

Depends on industry and strategy; all three matter.

ସେଟିଂ