Equity Analysis: DuPont Method
Interactive

Equity Analysis: DuPont Method

Intuition Publishing
Updated Sep 24, 2020

The DuPont technique decomposes a company's return on equity (ROE) into five elements: operating profit, interest burden, tax burden, asset turnover, and financial leverage. Here we explore each of these elements in detail and then put them together to give an overall picture of ROE.