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Exam 1 review · Lesson 7 of 45

Profitability Ratios & the DuPont Equation

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Exam 1 review · Lesson 7 of 45 · 14 min

Profitability Ratios & the DuPont Equation

Measure returns on sales, assets, equity and invested capital, split ROE into margin, turnover and leverage, and climb the income statement from ratios.

Inside this lesson

  1. Why this matters
  2. The core idea
  3. The formula
  4. Worked example 1: a profitability scan
  5. Worked example 2: climbing up to EBIT
  6. Your turn
  7. Calculator steps
  8. Common mistakes
  9. Quick check
  10. Key takeaways

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