# DuPont Analysis Calculator

URL: https://speedycalculator.com/calculators/finance/dupont-analysis/
Last updated: 2026-10-25

> The DuPont analysis calculator breaks return on equity into net profit margin, asset turnover and financial leverage, showing whether a company's ROE comes from profitability, efficiency or debt.

## Inputs

- Sales (revenue)
- Net income
- Total assets
- Total equity

## Results

- Net profit margin
- Total asset turnover
- Financial leverage (equity multiplier)
- Return on equity (ROE)
- Return on assets (ROA)

## Formula

```
ROE = net profit margin × asset turnover × equity multiplier
= (net income ÷ sales) × (sales ÷ total assets) × (total assets ÷ equity)
```

## Explanation

Two companies can have the same ROE for very different reasons – one through high margins, another through heavy borrowing. The DuPont breakdown, first used at DuPont in the 1920s, reveals which.

### How to use the DuPont Analysis Calculator

- **Sales (revenue)**
- **Net income**
- **Total assets**
- **Total equity**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter sales, net income, total assets and shareholders' equity.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterSales (revenue)Amount in your currencyNet incomeAmount in your currencyTotal assetsAmount in your currencyTotal equityAmount in your currency

### What each result means

- **Net profit margin** = [Net income]÷[Sales (revenue)]×100
- **Total asset turnover** = [Sales (revenue)]÷[Total assets]
- **Financial leverage (equity multiplier)** = [Total assets]÷[Total equity]
- **Return on equity (ROE)** = [Net profit margin]×[Total asset turnover]×[Financial leverage (equity multiplier)]
- **Return on assets (ROA)** = [Net income]÷[Total assets]×100

### Example values

How the main result changes when **Sales** changes and everything else stays at the example values above:

Sales (revenue)Return on equity (ROE) (%)2,500,000253,750,000255,000,000256,250,000257,500,0002510,000,00025

## Worked example

Inputs — Sales (revenue): $5,000,000; Net income: $400,000; Total assets: $4,000,000; Total equity: $1,600,000.

Results — Net profit margin = 8 %; Total asset turnover = 1.25 ×; Financial leverage (equity multiplier) = 2.5 ×; **Return on equity (ROE) = 25 %**; Return on assets (ROA) = 10 %.

## FAQ

**What is DuPont analysis?**
A breakdown of ROE into margin, turnover and leverage.

**Why is it useful?**
It shows whether ROE comes from operations or from debt.

**What is the 5-step DuPont?**
It also splits margin into tax burden, interest burden and operating margin.

**What formula does the DuPont Analysis Calculator use?**
ROE = net profit margin × asset turnover × equity multiplier.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)