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AAPL 200.08 +0.73 (+0.37%)MSFT 134.09 +0.28 (+0.21%)FB 187.72 +0.09 (+0.05%)ZNGA 5.87 -0.01 (-0.26%)NVDA 159.35 -0.9 (-0.56%)WBA 52.51 +0.02 (+0.03%)GOOG 1077.28 +2.66 (+0.25%)PIH 5.38 +0.03 (+0.47%)

Dupont Ratios Analysis ADSW Quote Advanced Di

ROE = Net IncomeAverage Total EquityROE = Net IncomePretax IncomeTax Burden  Net IncomePretax IncomeInterest Burden  E B I TRevenueReturn On Sales (ROS)Profit Margin  RevenueAverage Total AssetsAssets TurnoverROA  Average Total AssetsAverage Total EquityEquity Multiplier(Financial Leverage)ROE~=~\underbrace{\dfrac{Net~Income}{Average~Total~Equity}}_{\text{ROE}}~=~\underbrace{\underbrace{\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Tax~Burden}}~*~\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Interest Burden}}~*~\underbrace{\dfrac{E~B~I~T}{Revenue}}_{\text{Return~On~Sales~(ROS)}}}_{\text{Profit~Margin}}~*~\underbrace{\dfrac{Revenue}{Average~Total~Assets}}_{\text{Assets~Turnover}}}_{\text{ROA}}~*~\underbrace{\dfrac{Average~Total~Assets}{Average~Total~Equity}}_{\text{Equity~Multiplier(Financial~Leverage)}}

ROE =NI/EBT *EBT/EBIT *EBIT/Revenue *Asset Turnover *Company Equity Multiplier
-7.23%53.57%-75.68%5.27%83.38%4.06
ROA =Net Profit Margin *Asset Turnover
-1.78%-2.14%83.38%

The company's tax burden is (Net income ÷ Pretax profit). This is the proportion of the company's profits retained after paying income taxes. [NI/EBT]
The company's interest burden is (Pretax income ÷ EBIT). This will be 1.00 for a firm with no debt or financial leverage. [EBT/EBIT]
The company's operating income margin or return on sales (ROS) is (EBIT ÷ Revenue). This is the operating income per dollar of sales. [EBIT/Revenue]
The company's asset turnover (ATO) is (Revenue ÷ Average Total Assets).
The company's equity multiplier is (Average Total Assets ÷ Average Total Equity). This is a measure of financial leverage.

ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Average Total Assets)*(Average Total Assets/Average Equity) = (Net Profit/Equity)
-0.07228915662650602 = -0.021352313167259787 * 0.8338278931750742 * 4.0602409638554215

Profitability (measured by profit margin)
Asset efficiency (measured by asset turnover)
Financial leverage (measured by equity multiplier)