DuPont Analysis (3-Factor)
Formula
Net Profit Margin × Asset Turnover × Equity Multiplier
CategoryProfitability
ComponentsNPM; Asset Turnover; Equity Multiplier
Example12% × 1.0 × 2.0 = 24% ROE
External Links
- DuPont analysis — Wikipedia
Net Profit Margin × Asset Turnover × Equity Multiplier