What is DuPont analysis?

Definition: The standard for measuring performance, which was first adopted by DuPont in the1920s, is still in use today. Under this standard, in order to bring higher return on investment, assets are evaluated according to their total book value rather than their net book value.

Dupont analyzes the financial indicators with the return on net assets as the core, and comprehensively analyzes the profit level of enterprises through the internal relationship of financial indicators. The concrete and distinct hierarchical structure is a typical method to comprehensively analyze enterprise finance by using the relationship between financial indicators.