Dupont Analysis Calculator

Background.

This dupont analysis page is built to decompose return on equity into margin, asset turnover and equity multiplier. Three-step DuPont analysis shows whether ROE comes from operating profitability, asset use or financial leverage. The implemented convention is “ROE = (net income ÷ revenue) × (revenue ÷ average assets) × (average assets ÷ average equity).”

The editable entries are net income, revenue, average total assets, average shareholders' equity. Use values from the document or measurement that governs this dupont analysis question; the defaults are only the worked fixture below. Negative equity, average-versus-ending balances, one-time income and sector accounting can make the decomposition misleading. If that dupont analysis condition is not true, choose a calculation that models the missing convention.

U.S. SEC, Beginners' Guide to Financial Statements; income-statement and balance-sheet relationships documents the convention or governing rule used here. The dupont analysis output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is dupont analysis calculator?

Dupont Analysis is the relationship behind this decision: three-step DuPont analysis shows whether ROE comes from operating profitability, asset use or financial leverage. On this page it means ROE = (net income ÷ revenue) × (revenue ÷ average assets) × (average assets ÷ average equity). Negative equity, average-versus-ending balances, one-time income and sector accounting can make the decomposition misleading; that is the line between the reported quantity and a broader business finance analysis.

How to use this calculator.

1. 01Confirm that “ROE = (net income ÷ revenue) × (revenue ÷ average assets) × (average assets ÷ average equity)” matches the dupont analysis convention you need.
2. 02Replace the fixture values for net income, revenue, average total assets, average shareholders' equity with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read dupont return on equity together with this boundary: Negative equity, average-versus-ending balances, one-time income and sector accounting can make the decomposition misleading.

The formula.

The calculation uses ROE = (net income ÷ revenue) × (revenue ÷ average assets) × (average assets ÷ average equity). In this dupont analysis model, the entered terms are net income, revenue, average total assets, average shareholders' equity. Three-step DuPont analysis shows whether ROE comes from operating profitability, asset use or financial leverage, which is why the relationship is presented under this name rather than as a universal alternative. Negative equity, average-versus-ending balances, one-time income and sector accounting can make the decomposition misleading. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]U.S. SEC, Beginners' Guide to Financial Statements; income-statement and balance-sheet relationships. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]Financial Accounting Standards Board. Accounting Standards Codification. Retrieved 2026-08-07. independence: primary; access: open.
3. [3]U.S. Census Bureau. Quarterly financial report. Retrieved 2026-08-07. independence: secondary-check; access: open.
4. [4]U.S. Securities and Exchange Commission. Investor.gov glossary: Earnings per share (EPS). Retrieved 2026-08-07. independence: primary; access: open.
5. [5]Brealey, R. A., Myers, S. C., & Allen, F. Principles of Corporate Finance, 13th ed. McGraw-Hill. Standard treatment of the DuPont decomposition. independence: primary; access: print. (PRINT)