Friday, February 18, 2011

DuPont Return on Assets:


DuPont Return on Assets:

            The ratio is the relationship of the net income, sales and total assets of the company and measures the return on equity (ROE). Net Profit creates wealth for its owner. We calculate DuPont Return on Assets just because of the sales comparisons with net income and assets.
DuPont Return On Assets =
Net Profit    x   Net Sales
           Net Sales    x  Total Assets

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