Relationship of financial indicators: 1, ROE = net interest rate of assets (net profit/total assets) × equity multiplier (total assets/total equity capital).
2. Net interest rate of assets (net profit/total assets) = net profit rate of sales (net profit/total income) × asset turnover rate (total income/total assets)
3.ROE = NPM)× asset turnover rate (AU, asset utilization rate) × equity multiplier (EM)
In DuPont system, there are mainly the following indicators: 1, and the return on net assets is the starting point and core of the whole analysis system, which reflects the profitability of investors' net assets. Return on net assets is determined by sales return, total assets turnover rate and equity multiplier.
2. The equity multiplier indicates the degree of debt of the enterprise. The bigger the index, the higher the debt of the enterprise, which is the reciprocal of the asset equity ratio.
3. return on total assets is the product of sales profit rate and total assets turnover rate, which is a comprehensive reflection of enterprise sales performance and asset operation. To improve the rate of return on total assets, it is necessary to increase sales revenue and reduce capital occupation.
4. The turnover rate of total assets reflects the comprehensive ability of enterprise assets to realize sales revenue. When analyzing, we should comprehensively analyze whether the asset structure of the enterprise is reasonable, that is, the structural proportional relationship between current assets and long-term assets. At the same time, it is necessary to analyze the efficiency indicators of current assets turnover, inventory turnover, accounts receivable turnover and other related assets, and find out the exact reason for the change of total assets turnover.