DuPont Analysis is a term that refers to the decomposition of ROA and ROE indicators. DuPont chart is considered a basic pyramid structure. It belongs to the pyramid structures of ratios.
Basic equation for calculation:
ROA = ROS × Asset Turnover Ratio, i.e.
DuPont chart example - decomposition of ROE:
What is the DuPont Analysis in practice for?
DuPont Analysis is used for the revelation of the basic factors of efficiency. It completes the profitability ratios.