ROE & DuPont Ratio Flashcards
1
Q
ROE
A
Net Income/Equity
2
Q
DuPont Ratio
A
Net Profit Margin X Asset Turnover X Financial Leverage
ROA X Financial Leverage = ROE
3
Q
Financial Leverage
A
Average Total Assets/Equity
4
Q
Asset Turnover
A
Sales/Average Total Assets
5
Q
Net Profit Margin
A
Net Income/Sales
6
Q
Asset Turnover X Net Profit Margin
A
Return on Asset
7
Q
Extended DuPont Ratio
A
Tax Burden X Interest Burden X Operating Income Margin X Asset Turnover X Financial Leverage
8
Q
Operating Income Margin
A
EBIT/Sales
9
Q
Interest Burden
A
Pre Tax Income/EBIT
EBIT - 1
10
Q
Tax Burden (Retention Rate)
A
Net Income/Pre Tax Income
