DuPont formula
Noun


A formula that expresses a firm's return on equity (ROE) in terms of its net profit margin times its asset turnover times its leverage: (Net Income ÷ Sales) x (Sales ÷ Assets) x (Assets ÷ Equity).

Synonym(s): 
  • DuPont equation; DuPont method; DuPont model; dupont identity.