DuPont ROE Calculator

About this calculator

This calculator breaks return on equity into three drivers using the DuPont identity, ROE = Net Profit Margin × Asset Turnover × Equity Multiplier (net income/revenue × revenue/assets × assets/equity), showing whether a company's ROE comes from profitability, operational efficiency, or financial leverage. Two companies can post identical ROE for very different reasons — one running thin margins on high turnover (like a grocery chain) and another leveraging debt heavily (like a bank) — and DuPont analysis makes that distinction visible.

Equity analysts, corporate finance students, and investors use the DuPont breakdown to judge the quality and sustainability of a company's ROE, since leverage-driven ROE is riskier than margin- or efficiency-driven ROE. Enter net income, revenue, total assets and total equity to see the three components.