Dupont Ratios Analysis

Home Invest Belgium S.A. (HOMI.BR)

20.39 €

-0.25 (-1.21%)
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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
18.55% = 99.61% * 206.50% * 99.99% * 4.02% * 1.95


ROA = Net Profit Margin * Asset Turnover
8.27% = 205.67% * 4.02%


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)
0.18547662346163957 = 2.056739862157397 * 0.04018953951123233 * 1.9509299753682199

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