Dupont Ratios Analysis

Morgan Stanley China A Share Fund, ... (CAF)

$11.78

+0.01 (+0.09%)
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Historical Data
DCFDCF Levered
ROE = Net IncomeAverage Total Equity⏟ROE = Net IncomePretax Income⏟Tax Burden ∗ Net IncomePretax Income⏟Interest Burden ∗ E B I TRevenue⏟Return On Sales (ROS)⏟Profit Margin ∗ RevenueAverage Total Assets⏟Assets Turnover⏟ROA ∗ Average Total AssetsAverage Total Equity⏟Equity 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
-30.14% = 100.00% * 100.00% * 100.90% * -35.11% * 1.00


ROA = Net Profit Margin * Asset Turnover
-35.42% = 100.90% * -35.11%


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)
-0.3014149398730147 = 1.008982742476953 * -0.3510577457561893 * 1.0020271265414329

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