Tag Archives: Financial Analysis

DuPont Analysis: Formulas, Calculations, Decomposition, Pros, Cons

What it is: DuPont analysis (DuPont analysis) is an approach to break down the return on equity (ROE) ratio into a number of specific ratios. It helps us to know the reasons why a company’s ROE is superior (inferior) than competitors. If we compare the components from year to year, we will also know why the return on equity ratio goes up… Read More »