DuPont Analysis
Decomposes Return on Equity (ROE) into three causal drivers: profit margin, asset turnover, and financial leverage.
v1.0.00 variables4 edgesOpenCM 1.0
Common Uses
- Decomposing ROE into margin, turnover, and leverage
- Comparing profitability drivers across business units
- Identifying whether margin or efficiency is the weak link
- Board-deck KPI for the CFO
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