Calculating Return on Equity Using DuPont Analysis

DuPont Analysis is a useful financial performance measurement tool that breaks down Return on Equity (ROE) into its component parts. This method helps to analyze how effective a company is at generating profit from its equity capital. The three core components of DuPont Analysis are net profit margin, asset turnover, and financial leverage.

If a company has a net profit margin of 20%, an asset turnover ratio of 1.5, and financial leverage of 2.0, what is the company's Return on Equity (ROE)?