# Dupont Ratios Analysis

#### iShares Adaptive Currency Hedged MS... (DEZU)

#### $26.1052

$ROE~=~\underbrace{\dfrac{Net~Income}{Average~Total~Equity}}_{\text{ROE}}~=~\underbrace{\underbrace{\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Tax~Burden}}~*~\underbrace{\dfrac{Net~Income}{Pretax~Income}}_{\text{Interest Burden}}~*~\underbrace{\dfrac{E~B~I~T}{Revenue}}_{\text{Return~On~Sales~(ROS)}}}_{\text{Profit~Margin}}~*~\underbrace{\dfrac{Revenue}{Average~Total~Assets}}_{\text{Assets~Turnover}}}_{\text{ROA}}~*~\underbrace{\dfrac{Average~Total~Assets}{Average~Total~Equity}}_{\text{Equity~Multiplier(Financial~Leverage)}}$ |

ROE | = | NI/EBT | * | EBT/EBIT | * | EBIT/Revenue | * | Asset Turnover | * | Company Equity Multiplier |
---|---|---|---|---|---|---|---|---|---|---|

NaN% | = | NaN% | * | NaN% | * | NaN% | * | NaN% | * | - |

ROA | = | Net Profit Margin | * | Asset Turnover |
---|---|---|---|---|

NaN% | = | NaN% | * | NaN% |

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)

= * *

Profitability (measured by profit margin)

Asset efficiency (measured by asset turnover)

Financial leverage (measured by equity multiplier)