How to calculate DuPont ROE
The DuPont ROE formula, with plain worked examples you can check yourself.
DuPont ROE = (NI ÷ R) × (R ÷ A) × (A ÷ E) × 100
The result is a percentage (%).
Worked examples
NI = 20 · R = 400 · A = 400 · E = 200DuPont ROE = 10%
NI = 40 · R = 800 · A = 400 · E = 200DuPont ROE = 20%
NI = 90 · R = 900 · A = 900 · E = 300DuPont ROE = 30%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Financial Statements.
Related terms
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