💼intro to business review

DuPont

Written by the Fiveable Content Team • Last updated August 2025
Written by the Fiveable Content Team • Last updated August 2025

Definition

DuPont Analysis is a financial ratio based on the return on equity (ROE) formula that evaluates a company's ability to increase its return on equity by analyzing profit margin, asset turnover, and financial leverage. This technique breaks down the components of the ROE formula to identify strengths and weaknesses in different areas of a business's operations.

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