Advanced Valuation

DuPont Analysis

Break down Return on Equity (ROE) into its three core drivers: operating efficiency (profit margin), asset use efficiency (asset turnover), and financial leverage (equity multiplier).

Financial Statements Data
The 3-Step Breakdown
Net Margin

20.00%

Asset Turnover

1.25x

Equity Multiplier

2.00x

Return on Equity

True ROE

50.00%

NPM × AT × EM = ROE