Interactive Ratio Analysis
DuPont Analysis
Break return on equity into profitability, asset efficiency and financial leverage—using real public-company filings.
Net Profit Margin×Asset Turnover×Equity Multiplier=ROE
Analyze a company
What is driving ROE?
Enter one ticker for a company analysis, or add a second ticker to compare two business models. Results use the most recent annual 10-K data available through SEC EDGAR.
Professor's promptDon't stop at the ROE. Ask which component explains it—and whether that driver is sustainable.
U.S. domestic companies that file Form 10-K generally work best. Conventional DuPont analysis is less useful for banks and insurers.
Classroom examples:
Methodology
Three-step DuPont identity
Net Profit Margin = Net Income ÷ Revenue
Asset Turnover = Revenue ÷ Average Total Assets
Equity Multiplier = Average Total Assets ÷ Average Shareholders' Equity
ROE = Margin × Turnover × Multiplier = Net Income ÷ Average Equity
Data come from standardized SEC XBRL facts. Company-specific tagging, restatements, noncontrolling interests, unusual fiscal years or negative book equity can affect comparability. Unusual results should be checked against the linked 10-K.