https://wiki.treasurers.org/w/index.php?action=history&feed=atom&title=DuPont_pyramid_of_ratiosDuPont pyramid of ratios - Revision history2026-08-13T18:46:22ZRevision history for this page on the wikiMediaWiki 1.40.0https://wiki.treasurers.org/w/index.php?title=DuPont_pyramid_of_ratios&diff=16038&oldid=previmported>Doug Williamson: Create page. Source - DuPont analysis page.2021-07-30T20:54:00Z<p>Create page. Source - DuPont analysis page.</p>
<p><b>New page</b></p><div>''Financial analysis - ratio analysis.''<br />
<br />
The DuPont pyramid of ratios is a form of financial ratio analysis.<br />
<br />
It is based on the insight that key financial ratios can often be broken down, in turn, into two or more component ratios.<br />
<br />
Examining the component ratios, in turn, may yield further insights and opportunities for improvement.<br />
<br />
<br />
For example, Return on Equity can be broken down into three components:<br />
<br />
*Net profit margin;<br />
*Asset turnover; and<br />
*Leverage.<br />
<br />
<br />
Measuring and targeting different managers and corporate functions appropriately, can ensure that everyone is pulling in the same direction.<br />
<br />
This consistency is sometimes known as ''goal congruence''.<br />
<br />
<br />
The ratios are sometimes set out in a pyramid-shaped diagram.<br />
<br />
<br />
== See also ==<br />
* [[Asset turnover ]]<br />
* [[Financial analysis]]<br />
* [[Goal congruence]]<br />
* [[Leverage]]<br />
* [[Net profit margin]]<br />
* [[Price to earnings ratio]]<br />
* [[Profitability]]<br />
* [[Profitability ratio]]<br />
* [[Ratio analysis]]<br />
* [[Return on equity]]<br />
<br />
[[Category:Financial_management]]<br />
[[Category:Knowledge_and_information_management]]<br />
[[Category:Planning_and_projects]]<br />
[[Category:Accounting,_tax_and_regulation]]<br />
[[Category:The_business_context]]<br />
[[Category:Corporate_finance]]</div>imported>Doug Williamson