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DuPont Analysis Calculator

ROE broken into its drivers — margin, asset turnover and leverage — in the 3-step and 5-step forms.

Rytvae Consulting · Think Right · Invest Right

DuPont Analysis Calculator

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Result

Show formula & working

3-step: ROE = (PAT ÷ Revenue) × (Revenue ÷ Assets) × (Assets ÷ Equity)

5-step: ROE = (PAT ÷ PBT) × (PBT ÷ EBIT) × (EBIT ÷ Revenue) × (Revenue ÷ Assets) × (Assets ÷ Equity)

    How this works

    DuPont analysis explains why ROE is what it is: profitability, efficiency or leverage.

    The 5-step form separates the effects of tax and interest from operating margin.

    Frequently asked questions

    Why does leverage raise ROE?

    Borrowing lets the same equity control more assets; if those assets earn more than the cost of debt, ROE rises — and so does risk.

    Average or closing balances?

    Average assets and equity are standard.

    Want your ratios read the way a lender reads them?

    Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.

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