Financial statement
analysis
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DuPont Analysis: A Step-by-Step Guide to Financial Statement Analysis, Lecture notes of Financial Management
DuPont Step by step a analysis using return on equity
Typology: Lecture notes
2019/2020
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Financial statement
analysis
DuPont Analysis
Analysis that combine
Statement of Comprehensive Income
and
Statement of Financial Position
DuPont Analysis
Net Profit (NP) % x Total Asset Turnover x Fin Leverage
Net Profit - Pref div x Sales x Total Assets Sales Total Assets Equity - PS = Return on Total Assets (ROA) x Fin Leverage = Net Profit - Pref div x Total Assets Total Assets Equity - PS = Net Profit โ Pref dividends Equity โ Preference Shares
Return on Equity (ROE)
DuPont: NP%
- Step 1:
- (^) Net Profit (NP) % = Net Profit for the year โ Pref dividends
Sales
DuPont: ROA
- Step 3:
- (^) Return on Total Assets = NP % x Total Asset Turnover
= Net Profit for the year โ Pref dividends
Total Assets
DuPont: Fin Leverage
- Step 4:
- (^) Financial Leverage = Total Assets__________
Ordinary Shareholders Equity
DuPont
Net Profit (NP) % x Total Asset Turnover x Fin Leverage
_____________ = % x ________ = times x Total Assets Equity - PS = Return on Total Assets (ROA) x Fin Leverage = ___________ = % x = % x ___________ = = _______________ = % x = % ( x x )