Finance Calculators

DuPont Analysis Calculator

Break a company's return on equity (ROE) down into net margin, asset turnover and financial leverage using DuPont analysis.

Net income

Revenue

Total assets

Shareholder equity

Net profit margin —

Asset turnover —

Equity multiplier —

ROE (from decomposition) —

About the DuPont Analysis Calculator

DuPont analysis breaks return on equity into three drivers — profitability, efficiency and leverage — revealing whether a high ROE comes from strong margins, efficient asset use, or simply a lot of debt.

Formula: ROE = Net Profit Margin × Asset Turnover × Equity Multiplier, where Net Profit Margin = Net Income ÷ Revenue, Asset Turnover = Revenue ÷ Total Assets, and Equity Multiplier = Total Assets ÷ Shareholder Equity.

Two companies can post the same ROE for very different reasons — one from superior profitability, another from heavy leverage — and DuPont analysis is the standard way to tell them apart before investing.