The sustainable growth rate calculator formula can be used to calculate whether a business can finance its planned growth from internal sources of finance such as retained earnings, or whether it has to seek additional external finance by issuing new equity or amending its financial leverage.
DuPont Analysis Calculator
A business owners return can be measured using the return on equity (ROE) ratio, calculated by dividing the net income by the owners equity.
This DuPont analysis calculator is used to separate the return on equity into five separate ratios to explain which aspects of the business are impacting on its ability to make a return.
DuPont Return on Equity Formula
On its own the return on equity formula tells you very little about how the business managed to make the return. In order to do this a technique called DuPont analysis is applied to the return on equity formula, which basically involves separating out the various aspects of the business to show how they have an impact on the equity return.
Return on Equity
The return on equity (ROE) is used to measure the percentage rate of return the owner of a business gets on their invested equity.
The return on equity measures the ability of a business operation to use its money to generate earnings. It is calculated by dividing the net income by the owners equity.