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Financial statement

analysis

DuPont Analysis

Analysis that combine

Statement of Comprehensive Income

and

Statement of Financial Position

DuPont Analysis

Net Profit (NP) % x Total Asset Turnover x Fin Leverage

Net Profit - Pref div x Sales x Total Assets Sales Total Assets Equity - PS = Return on Total Assets (ROA) x Fin Leverage = Net Profit - Pref div x Total Assets Total Assets Equity - PS = Net Profit – Pref dividends Equity – Preference Shares

Return on Equity (ROE)

DuPont: NP%

• Step 1:
• (^) Net Profit (NP) % = Net Profit for the year – Pref dividends

Sales

DuPont: ROA

• Step 3:
• (^) Return on Total Assets = NP % x Total Asset Turnover

= Net Profit for the year – Pref dividends

Total Assets

DuPont: Fin Leverage

• Step 4:
• (^) Financial Leverage = Total Assets__________

Ordinary Shareholders Equity

DuPont

Net Profit (NP) % x Total Asset Turnover x Fin Leverage

_____________ = % x ________ = times x Total Assets Equity - PS = Return on Total Assets (ROA) x Fin Leverage = ___________ = % x = % x ___________ = = _______________ = % x = % ( x x )

Return on Equity (ROE)

DuPont: Ezweni