DuPont Analysis Explained: 3-Step and 5-Step ROE
DuPont analysis splits return on equity into margin, asset turnover, and leverage so you can see whether a high ROE comes from operating skill, capital efficiency, or just borrowing.
DuPont analysis splits return on equity into margin, asset turnover, and leverage so you can see whether a high ROE comes from operating skill, capital efficiency, or just borrowing.