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    Explanation and Calculation of Du Pont Identity

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    Construct the DuPont identity for Smolira Golf. What is the DuPont identity?

    © BrainMass Inc. brainmass.com February 24, 2021, 2:06 pm ad1c9bdddf


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    DuPont identity is one of the more important ratios for financial analysis.

    DuPont identity:
    ROE = Net Income/Sales * Sales/Assets * Assets/Shareholders' ...

    Solution Summary

    I have given an explanation of Du Pont identity in this solution. I have also explained how to calculate Du Pont identity from financial statements.