What is DuPont Financial Analysis System?

Dupont analysis system is a comprehensive analysis of the financial situation of enterprises by using the relationship between several major financial ratios, also known as DuPont financial analysis method, which was first used by DuPont company in the United States, hence the name Dupont analysis method. Dupont analysis is a classic method to evaluate the profitability of the company and the level of return on shareholders' equity, and it is also a method to evaluate the performance of the company from the financial point of view. Its basic idea is to decompose the return on net assets of enterprises into the product of multiple financial ratios step by step, which is helpful to deeply analyze and compare the operating performance of enterprises.

The main indicators are as described upstairs, and there are several branches under these big indicators. This series of financial analysis indicators constitute the entire DuPont financial analysis system.