The DuPont equation relates a company's net profit margin, total asset turnover ratio, and equity multiplier to determine its return on equity.

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The DuPont equation is a widely used financial formula that breaks down a company's return on equity (ROE) into three components: net profit margin, total asset turnover ratio, and equity multiplier. By analyzing each of these elements, investors and analysts can gain a better understanding of a company's financial performance and ability to generate returns for shareholders.

The DuPont Equation Relates a Company's Net Profit Margin, Total