ROE (DuPont)
Return on equity decomposed into what drives it: profitability, asset efficiency and leverage.
Formula
Net margin × asset turnover × equity multiplier (equals net income ÷ average equity exactly)
Served as: annual · derived. Annual and quarterly observations are never mixed unlabeled.
Where the inputs come from
- NetIncomeLoss
- Revenues
- Assets and StockholdersEquity at consecutive period ends
Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.
How to compare it honestly
Compare the FACTORS, not just the product - two companies with equal ROE can get there by opposite routes.
When it is not served
Not computed where any factor is missing or N/M; the disclosed residual against the direct point-in-time ROE is the average-vs-period-end equity basis, not an error.
Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.
What it cannot tell you
A decomposition of one year's accounting figures; it does not rank the three routes to ROE by quality or durability.
Questions worth asking next
- Which factor moved the most over the last several years?
- Does the leverage term explain more of the ROE than margin and turnover together?
Research prompts, not recommendations.
See it computed from filings
Related in returns: ROE · ROA · ROIC · ROCE · Asset turnover · Equity multiplier · Tax burden · Interest burden
Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.