DuPont Analysis

Last Update July 23, 2021
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About This Course

The Dupont analysis, also known as the Dupont formula, is a financial ratio that is dependent on the return on equity ratio that is used to assess a company’s ability to maximize its return on equity. In other words, this model deconstructs the return on equity ratio to illustrate how firms can boost shareholder returns. Accounting Analytics investigates the relationship between financial reporting results and non-financial indicators and financial results. You’ll learn how to use data to determine what affects financial results and predict future financial scenarios in this course. Although many accounting and finance institutions have data, accounting analytics uses the data to provide analysis, and this course will look into how accounting data will help with customer behavior forecasts, organizational planning, risk control, and optimization, among other things. You’ll learn how financial and non-financial data combine to predict outcomes, maximize processes, and decide policy by the end of this course. This course is intended to assist you in making informed business choices related to accounting analytics’ changing positions. DuPont analysis is a valuable method for separating the various sources of return on equity (ROE). The ROE decomposition enables investors to focus independently on primary financial performance metrics in order to identify strengths and disadvantages. Operating efficiency, asset utilization performance, and financial leverage are the three major financial indicators that drive equity return (ROE). A net profit margin or net income divided by total sales or earnings is known as operating performance.

Skills You Will Master :

  • DuPont Analysis – In this section you will see DuPont is used to assess the various components of a company’s return on equity (ROE). This enables an investor to identify which financial practices are most responsible for improvements in ROE.
  • Accounts Payable Turnover – In this topic you will learn accounts payable turnover ratio is a short-term liquidity indicator that quantifies how quickly a business pays its vendors.
  • Days Payable Outstanding – In this topic we will see that days payable unpaid is a productivity ratio that calculates how long it takes a business to pay its vendors on average.
  • Accounts Payable Turnover Ratio – In this section you will see the accounts payable turnover ratio determines how easily a company pays borrowers and customers that expand credit lines.
  • Cash Conversion Cycle – In this topic you will learn the cash conversion period is a statistic that measures how long it takes an organization to turn money into cash flows in days.
  • Defensive Interval Ratio – In this section we will see that interval measure is a financial ratio that helps a business figure out how much money it wants to run its business.

Learning Objectives

You will see DuPont is used to assess the various components of a company's return on equity.
You will learn the cash conversion cycle.
You will learn the concept of accounts payable turnover.
You will also learn the defensive interval ratio.

Material Includes

  • 20 on demand videos
  • Downloadable exercise files
  • Lifetime Access
  • Certificate of Completion


  • No prior accounting knowledge is necessary to learn this course.
  • Basic fundamentals of Mathematics will help.

Target Audience

  • Finance students, managers, accountants or anyone who wants to upgrade their skills in the area of accounting.
  • Learn this course if you want to understand the principles and concept of double-entry bookkeeping.


20 Lessons3h

Asset Efficiency Ratio

Asset Efficiency Ratio00:07:41

Asset Turnover

Calculating Asset Efficiency

Accounts Payable Turnover

Days Payable Outstanding

Accounts Payable Turnover Ratio

Cash Conversion Cycle

Defensive Interval Ratio

DuPont Analysis

Calculating Terms

Enterprise Value

Market Capital

Preferred Share Capital


Price to Earning Ratio


Dividend Per Share

PEG Ratio

Purpose of Using Ratios


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All Levels
Duration 3 hours
20 lectures

Material Includes

  • 20 on demand videos
  • Downloadable exercise files
  • Lifetime Access
  • Certificate of Completion