How to Use DuPont Analysis Calculator
The DuPont Analysis Calculator breaks ROE into three meaningful drivers. Enter net income, revenue, average total assets and average shareholders’ equity. The DuPont Analysis Calculator outputs net profit margin, asset turnover, equity multiplier and the resulting ROE.
- Pick a currency for the monetary inputs.
- Enter net income and revenue.
- Enter average total assets and equity — the “average” comes from beginning and ending balances.
Formula & Theory — DuPont Analysis Calculator
The DuPont Analysis Calculator uses the three-step model:
ROE = Net Margin × Asset Turnover × Equity Multiplier
= (Net Income / Revenue) × (Revenue / Avg Assets) × (Avg Assets / Avg Equity)| Symbol | Meaning |
|---|---|
| Net Margin | Net Income / Revenue |
| Asset Turnover | Revenue / Average Total Assets |
| Equity Multiplier | Average Total Assets / Average Equity |
Assumptions and Limits
The DuPont Analysis Calculator assumes balance sheet averages reasonably represent the period; one-off items in net income should be normalised manually.
Use Cases for DuPont Analysis Calculator
- Equity research — compare drivers between peers.
- CFO dashboards — quickly attribute ROE moves.
- Education — practise financial statement analysis.
- Investor pitch — explain why ROE changed year over year.