DuPont Model ROE
ROE = Net
profit/Equity
ROA = Net
Assets/Equity
profit/Assets
Asset turnover Profit margin
Net profit Sales
Sales Total Assets
(EAT)
Long-term assets Current assets Sales Cost
Current
Reserves Receivables financial Depreciation Taxes Interest Other costs
assets
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DuPont Model ROI (1)
Return on
investment
Asset turnover Profit margin
Earnings before Operating income
Operating income Assets
interest and tax
Fixed assets Current assets Operating income Operating Non-operating
expenses income
Cash and Accounts Inventory Other current
equivalents receivable assets
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DuPont Model ROI (2)
Cash and
equivalents
Fixed assets
Accounts
Operating income receivable
Asset turnover Current assets
Inventory
Assets
Operating income Other current
Return on assets
investment
Earnings before Operating
interest and tax expenses
Profit margin
Non-operating
income
Operating income
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