DuPont Analysis Calculator
Break return on equity into margin, asset turnover and leverage, with an optional five-step view.
Quick answer
DuPont analysis splits return on equity into drivers: ROE = net profit margin x asset turnover x equity multiplier (average assets / average equity). A 5-step version also separates tax burden, interest burden and EBIT margin.
DuPont Analysis Calculator
Optional. With EBIT, enables the five-step view.
Return on Equity
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Net Profit Margin
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Asset Turnover
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Equity Multiplier
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Tax Burden (5-step)
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Interest Burden (5-step)
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EBIT Margin (5-step)
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DuPont Components
| Step | Component | Formula | Value |
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Assumptions & method
- 3-step: ROE = (net income ÷ revenue) × (revenue ÷ average assets) × (average assets ÷ average equity).
- 5-step: ROE = (net income ÷ EBT) × (EBT ÷ EBIT) × (EBIT ÷ revenue) × asset turnover × equity multiplier.
- Revenue, average assets and average equity must be above zero. Averages are (beginning + ending) ÷ 2, which you compute beforehand.
- The five-step view needs both EBT and EBIT, and neither can be zero. Without them only the three-step view is shown.
- Not included: adjustments for one-off items, off-balance-sheet financing or comparison with peers.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
Why DuPont analysis is useful
A single ROE figure hides how it was produced. DuPont analysis rewrites ROE as a chain of ratios, so you can see whether returns come from keeping more of each sale as profit, from using assets to generate more sales, or from funding the business with relatively more borrowed money. The three-step form uses net margin, asset turnover and the equity multiplier. The five-step form also separates the effect of taxes and interest from operating profitability. This calculator checks that the components multiply back to ROE and shows each one, so you can judge which lever matters most for the company you are looking at.