Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is DuPont analysis And how is it calculated?

user-image
Question added by Deleted user
Date Posted: 2014/09/19
Abed Hasan Abdullah  Othman
by Abed Hasan Abdullah Othman , general accountant , Atyaby for trading

 

DuPont analysis examines the return on equity  

(ROE)analyzing profit margin ,total  asset  turnover, and financial leverage . It was created by the DuPont Corporation 

calculated as  follow  return on assets  (ROA) = NET INCOME /average total assets 

=net income /sales *sales /average total assets  

return on equity (ROE)=net income /average equity  

 

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

DuPont one of Financial Analysis tools used to measure Company Efficiency Performance

 

Return On Investment (Assets) = Profitability Ratio X Investment (Assets) Turnover

 

ROI = (Net Operating Profit after tax / Sales) X (Sales / Average Net Assets)

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.