DuPont Method Flashcards by Chloe Heath | Brainscape

Q

How do you calculate ROE using DuPont Method?

A

ROE = Profit Margin x Asset Turnover x Leverage

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Q

What goes into profitability of DuPont?

A

Profit Margin = Net Profit / Revenue

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Q

What goes into Productivity in DuPont Method?

A

Asset Turnover = Revenue / Assets

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Q

What goes into Leverage in the DuPont Method?

A

Leverage = Assets / Shareholders Equity

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Q

How do you calculate ROA, DuPont Style?

A

Profit Margin x Asset Turnover

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