AAPL 152.52 -2.12999 -1.3772969FB 196.64 +0.990005 0.50600845MSFT 269.17 +1.61002 0.6017401NVDA 222.58 +0.850006 0.3833519WBA 36.63 -0.110001 -0.29940283ZNGA 8.18 -0.17 -2.035929
AAPL 152.52 -2.12999 -1.3772969FB 196.64 +0.990005 0.50600845MSFT 269.17 +1.61002 0.6017401NVDA 222.58 +0.850006 0.3833519WBA 36.63 -0.110001 -0.29940283ZNGA 8.18 -0.17 -2.035929

Dupont Ratios Analysis GOOG Quote Alphabet In

ROE = Net IncomeAverage Total EquityROE = Net IncomePretax IncomeTax Burden  Net IncomePretax IncomeInterest Burden  E B I TRevenueReturn On Sales (ROS)Profit Margin  RevenueAverage Total AssetsAssets TurnoverROA  Average Total AssetsAverage Total EquityEquity Multiplier(Financial Leverage)ROE~=~\underbrace{\dfrac{Net~Income}{Average~Total~Equity}}_{\text{ROE}}~=~\underbrace{\underbrace{\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Tax~Burden}}~*~\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Interest Burden}}~*~\underbrace{\dfrac{E~B~I~T}{Revenue}}_{\text{Return~On~Sales~(ROS)}}}_{\text{Profit~Margin}}~*~\underbrace{\dfrac{Revenue}{Average~Total~Assets}}_{\text{Assets~Turnover}}}_{\text{ROA}}~*~\underbrace{\dfrac{Average~Total~Assets}{Average~Total~Equity}}_{\text{Equity~Multiplier(Financial~Leverage)}}

ROE =NI/EBT *EBT/EBIT *EBIT/Revenue *Asset Turnover *Company Equity Multiplier
ROA =Net Profit Margin *Asset Turnover

The company's tax burden is (Net income ÷ Pretax profit). This is the proportion of the company's profits retained after paying income taxes. [NI/EBT]
The company's interest burden is (Pretax income ÷ EBIT). This will be 1.00 for a firm with no debt or financial leverage. [EBT/EBIT]
The company's operating income margin or return on sales (ROS) is (EBIT ÷ Revenue). This is the operating income per dollar of sales. [EBIT/Revenue]
The company's asset turnover (ATO) is (Revenue ÷ Average Total Assets).
The company's equity multiplier is (Average Total Assets ÷ Average Total Equity). This is a measure of financial leverage.

ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Average Total Assets)*(Average Total Assets/Average Equity) = (Net Profit/Equity)
0.280186426537012 = 0.2157701169797944 * 1.0778939324286405 * 1.2047023792399092

Profitability (measured by profit margin)
Asset efficiency (measured by asset turnover)
Financial leverage (measured by equity multiplier)