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.
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