DuPont Analysis: Return on Equity Analysis

Running Head: DuPont Analysis
Return on Equity Analysis

DuPont Analysis 1
DuPont Analysis:
DuPont Analysis is the extended study of return on equity (ROE). ROE is the measure that
analyses the profitability of the firm. Primarily there are three components of a company’s
ROE. They are: Net Profit Margin, Financial Leverage or Asset Turnover.
(All amounts in USD Million)
Targ
et
Walmar
t
Ratios Formulas 2015 2014 2015 2014
Net Profit
Margin=
Net Profit
-1636 1971 16363 16022
Sales
72618 72596 485651 476294
-
2.25% 2.72% 3.37% 3.36%
Financial
Leverage=
Total Assets
41404 44553 203706 204751
Total Equity
13997 16231 81394 76255
2.96 2.74 2.50 2.69
Asset Turnover
Ratio=
Sales
72618 72596 485651 476294
Total Assets
41404 44553 203706 204751
1.75 1.63 2.38 2.33