DuPont Analysis Calculator

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A DuPont Analysis Calculator breaks down Return on Equity (ROE) into key components—profitability, efficiency, and leverage—to analyze the drivers of a company’s returns. More info →

Input

Enter financial information to perform DuPont Analysis.

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How This Calculator Works

Return on Equity (ROE) tells you how much profit a company makes on its shareholders' money. DuPont analysis splits ROE into parts so you can see why it is high or low: how much profit it keeps from each sale, how hard its assets work, and how much it relies on debt.

The Formulas

ROE = Net Profit Margin × Asset Turnover × Equity Multiplier
= (Net Profit ÷ Revenue) × (Revenue ÷ Assets) × (Assets ÷ Equity)

Operating margin = Operating Profit ÷ Revenue · Interest burden = PBT ÷ Operating Profit · Tax burden = Net Profit ÷ PBT · Equity turnover = Revenue ÷ Equity

What Each Input Does

Revenue / Sales: Total sales, used for the margins and turnovers.
Operating Profit / Profit Before Tax / Net Profit: Profit at three levels. Comparing them shows how much interest and tax take away.
Interest Expense / Tax Expense: For reference. The burdens are worked out from the profit figures.
Total Assets / Shareholder's Equity: Used for asset turnover and the equity multiplier (a measure of leverage).

Step by Step

ROE = net profit ÷ equity.
Margins: net profit and operating profit ÷ revenue.
Interest burden and tax burden show how much profit survives interest and tax.
Asset turnover, equity turnover and the equity multiplier are worked out.

Reading the Result

High margin or turnover – ROE driven by a healthy business.

High equity multiplier – ROE boosted by debt, which adds risk.

Quick Example

Revenue 2,000,000, operating profit 300,000, PBT 250,000, net profit 187,500, assets 1,600,000, equity 800,000. Net margin 9.38% × asset turnover 1.25 × equity multiplier 2.00 = ROE of 23.44%. Interest burden is 0.83 and tax burden 0.75.