How it works
Net profit margin, asset turnover and equity multiplier are multiplied for the DuPont ROE relation. This form solves for net profit margin; enter the known quantities in Return on equity, Asset turnover, Equity multiplier.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Return on equity | 20 % | Formula symbol: roe. Enter the percentage as a number: for 15%, enter 15. |
| Asset turnover | 1 x | Formula symbol: turnover. Required unit: x. Must be greater than zero. |
| Equity multiplier | 2 x | Formula symbol: multiplier. Required unit: x. Must be greater than zero. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Return on equity
- 20 %
- Asset turnover
- 1 x
- Equity multiplier
- 2 x
Complete example results
- Net profit margin
- 10 %
Reading the result
The result solves for net profit margin from the entered quantities. Check the result unit and the formula conditions before using it.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
When can I use the net profit margin result?
Use the same period and accounting scope. A negative margin can represent a loss; the result is not a new investment return or price target.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: openstax.org