DuPont Analysis Template

Further Reading → DuPont Analysis

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DuPont Analysis
($ in millions) Downside Base Upside Step

Revenue $200 $250 $300 $50

(–) COGS (140) (150) (160) (10)
Gross Profit $60 $100 $140
(–) OpEx (40) (50) (60) (10)
Operating Income (EBIT) $20 $50 $80
(–) Interest Expense -- (10) (20) (10)
Pre-Tax Income $20 $40 $60
(–) Taxes 25.0% -- -- --
Net Income $20 $40 $60

Average Total Assets $500 $450 $400 ($50)

Average Shareholders' Equity $500 $400 $300 ($100)

DuPont Return on Equity (ROE)

Downside Base Upside
3-Step DuPont Approach
Net Profit Margin 10.0% 16.0% 20.0%
Total Asset Turnover 0.4x 0.6x 0.8x
Financial Leverage Ratio 1.0x 1.1x 1.3x
Return on Equity (ROE) 4.0% 10.0% 20.0%

5-Step DuPont Approach

Tax Burden 1.0x 1.0x 1.0x
Total Asset Turnover 0.4x 0.6x 0.8x
Financial Leverage Ratio 1.0x 1.1x 1.3x
Interest Burden 1.0x 0.8x 0.8x
Operating Margin 10.0% 20.0% 26.7%
Return on Equity (ROE) 4.0% 10.0% 20.0%

Check -- -- --
Gross Profit = Revenue – COGS

Operating Income (EBIT) = Gross Profit – OpEx

Pre-Tax Income = Operating Income – Interest Expense

Taxes = (% Tax Rate) × Pre-Tax Income
Net Income = Pre-Tax Income – Taxes

Net Profit Margin = Net Income ÷ Revenue

Total Asset Turnover = Revenue ÷ Total Assets
Financial Leverage Ratio = Total Assets ÷ Shareholders' Equity

Tax Burden = Net Income ÷ Pre-Tax Income

Total Asset Turnover = Revenue ÷ Total Assets
Financial Leverage Ratio = Total Assets ÷ Shareholders' Equity
Interest Burden = Pre-Tax Income ÷ Operating Income
Operating Margin = Operating Income ÷ Revenue