Economy diskusije

The DuPont system of analysis is an approach that can be used to analyze return on equity (ROE). It uses basic algebra to break down ROE into a function of different ratios, so an analyst can see the impact of leverage, profit margins, and turnover on shareholder returns.

ROE=(Net Income/Equity)   >   ROE=(Net Income/Revenue)(Revenue/Equity)   >   ROE=(Net Profit Margin)(Equity Turnover)

ROE=(Net Income/Sales)(Sales/Assets)(Assets/Equity), where (Net Income/Sales)x(Sales/Assets) = ROA

ROE=(Net Profit Margin*)(Asset Turnover)(Leverage Ratio)

*Net Profit Margin:
1. EBIT/Revenue (Earnings Before Income & Taxes |EBIT| Margin)
2. EBT/EBIT (Interest Burden)
3. Net Income/EBT (Tax Burden)


... ROE=Operating Margin x Tax Burden x Interest Burden x Total Asset Turnover x Financial Leverage

Is there any other form of DuPont ?