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

Водич корак по корак

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

Worked Examples

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

Common Mistakes to Avoid

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

Frequently Asked Questions

Which component is most important?

Depends on industry and strategy; all three matter.

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