Darla SandyKnowledge Contributor
What is the DuPont analysis, and how does it help analyze a company's return on equity (ROE)?
What is the DuPont analysis, and how does it help analyze a company's return on equity (ROE)?
DuPont analysis decomposes ROE into its component parts, including profit margin, asset turnover, and financial leverage, to understand the drivers of profitability.