Research Library

The top resource for free research, white papers, reports, case studies, magazines, and eBooks.

Share Your Content with Us
on for readers like you. LEARN MORE
DuPont Analysis: Definition, Benefits and How to Calculate

Request Your Free Article Now:

"DuPont Analysis: Definition, Benefits and How to Calculate"

The DuPont Analysis is a framework used to analyze a company’s financial performance through an examination of its return on equity (ROE).

The DuPont Analysis reduces ROE down into three components – net profit margin, total asset turnover and financial leverage – to arrive at an overall percentage score.

Also referred to as the DuPont model or identity, the DuPont method or the strategic profit model, this framework was developed by the DuPont Corporation in the 1920s.

It is a well-respected formula used by company financial managers, independent financial advisors and investors alike.

Offered Free by: WikiJob
See All Resources from: WikiJob

Recommended for Professionals Like You: