DuPont Analysis Calculator

✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%
✖Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.ⓘ Revenue [R]			+10% -10%
✖Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time.ⓘ Average Total Assets [ATA]			+10% -10%
✖Average Total Equity is a financial metric that represents the average value of a company's total equity over a specific period of time.ⓘ Average Total Equity [ATE]			+10% -10%

✖Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.ⓘ DuPont Analysis [ROE]

⎘ Copy

👎

Formula

✖

DuPont Analysis

Formula

`"ROE" = ("NI"/"R")*("R"/"ATA")*("ATA"/"ATE")`

Example

`"100"=("200000"/"10000")*("10000"/"1000")*("1000"/"2000")`

Calculator

LaTeX

Reset

👍

DuPont Analysis Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
ROE = (NI/R)*(R/ATA)*(ATA/ATE)
This formula uses 5 Variables

Variables Used

Return on Equity - Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.
Net Income - Net income is a company's total earnings.
Revenue - Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Average Total Assets - Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time.
Average Total Equity - Average Total Equity is a financial metric that represents the average value of a company's total equity over a specific period of time.

STEP 1: Convert Input(s) to Base Unit

Net Income: 200000 --> No Conversion Required
Revenue: 10000 --> No Conversion Required
Average Total Assets: 1000 --> No Conversion Required
Average Total Equity: 2000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROE = (NI/R)*(R/ATA)*(ATA/ATE) --> (200000/10000)*(10000/1000)*(1000/2000)

Evaluating ... ...

ROE = 100

STEP 3: Convert Result to Output's Unit

100 --> No Conversion Required

FINAL ANSWER

100 <-- Return on Equity

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Financial Accounting » DuPont Analysis

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< 23 Financial Accounting Calculators

DuPont Analysis

Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)

Internal Rate of Return

Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment

Net Operating Cycle

Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)

Discount Lost

Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))

Annual Equivalent Cost

Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)

Net Present Value

Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))

Annual Percentage Yield

Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1

Effective Yield

Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1

Depletion Charge per Unit

Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion

Value of Stock

Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)

Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares

Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares

Operating Cash Flow

Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes

EBITDA

Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization

Discount Percentage

Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100

Residual Value

Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan

Long term Debt to Equity ratio

Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund

EBIT

Go Earnings Before Interest and Taxes = Revenue-Operating Expense

Depletion Expense

Go Depletion Expense = Depletion Charge per Unit*Units Consumed

Shareholders' Equity given Total Assets and Liabilities

Go Total Shareholders' Equity = Total Assets-Total Liabilities

Discount Factor

Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)

Discount given Discount Rate and List Price

Go Discount = Discount Rate*List Price

Discount given List Price and Price Paid

Go Discount = List Price-Price Paid

List Price

Go List Price = Price Paid+Discount

DuPont Analysis Formula

Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
ROE = (NI/R)*(R/ATA)*(ATA/ATE)

What is DuPont Analysis?

DuPont analysis is a financial ratio analysis framework that decomposes the return on equity (ROE) into various components to assess the factors driving a company's profitability. It is a fundamental tool used in financial analysis to evaluate the sources of a company's profitability and to identify areas where management can improve performance.
DuPont analysis falls under the category of financial analysis or financial management within the field of finance. It is commonly used by analysts, investors, and managers to understand the underlying drivers of a company's financial performance. By breaking down ROE into its components such as profit margin, asset turnover, and financial leverage, DuPont analysis provides insights into how efficiently a company is using its resources to generate profits and create value for shareholders.
In summary, while DuPont analysis is a specific analytical technique, it is used within the broader field of financial analysis and falls under the purview of financial managemen

How to Calculate DuPont Analysis?

DuPont Analysis calculator uses Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity) to calculate the Return on Equity, The DuPont Analysis formula is defined as a financial ratio analysis framework that decomposes the return on equity into various components to assess the factors driving a company's profitability. Return on Equity is denoted by ROE symbol.

How to calculate DuPont Analysis using this online calculator? To use this online calculator for DuPont Analysis, enter Net Income (NI), Revenue (R), Average Total Assets (ATA) & Average Total Equity (ATE) and hit the calculate button. Here is how the DuPont Analysis calculation can be explained with given input values -> 100 = (200000/10000)*(10000/1000)*(1000/2000).

FAQ

What is DuPont Analysis?

The DuPont Analysis formula is defined as a financial ratio analysis framework that decomposes the return on equity into various components to assess the factors driving a company's profitability and is represented as ROE = (NI/R)*(R/ATA)*(ATA/ATE) or Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity). Net income is a company's total earnings, Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers, Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time & Average Total Equity is a financial metric that represents the average value of a company's total equity over a specific period of time.

How to calculate DuPont Analysis?

The DuPont Analysis formula is defined as a financial ratio analysis framework that decomposes the return on equity into various components to assess the factors driving a company's profitability is calculated using Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity). To calculate DuPont Analysis, you need Net Income (NI), Revenue (R), Average Total Assets (ATA) & Average Total Equity (ATE). With our tool, you need to enter the respective value for Net Income, Revenue, Average Total Assets & Average Total Equity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search