What this calculator does
DuPont analysis (ROE breakdown) works out splits return on equity into profitability, efficiency and leverage. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaROE = Net margin × Asset turnover × Equity multiplier where Net margin = NI/Revenue, Asset turnover = Revenue/Assets, Equity multiplier = Assets/Equity
The inputs explained
| Field | What to enter |
|---|---|
| Net income ($) | A number, measured in your currency. Starts at 180000. |
| Revenue ($) | A number, measured in your currency. Starts at 1500000. |
| Total assets ($) | A number, measured in your currency. Starts at 1000000. |
| Total equity ($) | A number, measured in your currency. Starts at 600000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with net income
Every other input is held at the calculator’s starting values while net income varies. Select any row to load that scenario into the calculator.