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DuPont Analysis Calculator

Investing & Markets

Break down Return on Equity into net profit margin, asset turnover, and financial leverage using the 3-step DuPont formula.

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USD
$0.00$1,000,000,000,000.00
USD
$0.01$1,000,000,000,000.00
USD
$0.01$1,000,000,000,000.00
USD
$0.01$1,000,000,000,000.00

Return on Equity (ROE)

20.00%

ROE decomposed into profitability, efficiency, and leverage.

Net Profit Margin

10.00%

Asset Turnover

0.500

Equity Multiplier (Financial Leverage)

4.000

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is the 3-step DuPont formula?

ROE = Net Profit Margin x Asset Turnover x Equity Multiplier. It breaks ROE down into how profitable a company is, how efficiently it uses assets, and how much financial leverage it uses.

Why does DuPont analysis matter?

Two companies can have the identical ROE for very different reasons. DuPont analysis reveals whether ROE is driven by strong margins, efficient asset use, or simply heavy debt leverage.

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