How to use DuPont analysis to understand RoE - The Hindu BusinessLine
How to use DuPont analysis to understand RoE Satya Sontanam BL Research Bureau | Updated on January 23, 2021 The return on equity (RoE) is one of the key metrics to identify stocks. A simple way of calculating it, is by dividing the net profit by shareholders’ equity. The DuPont analysis takes into consideration other key financial metrics that drive the RoE and helps investors make an informed decision. As per DuPont analysis, RoE is equal to net profit margin *asset turnover * financial leverage. We considered only Nifty 200 companies (excluding BFSI) for the purpose of this analysis....
Source: thehindubusinessline.com