du pont formula
Definition
Mathematical equation that shows relationship between return on investment (ROI), asset turnover, and profit margin. Also called du pont system, it is expressed as ROI = Total Asset Turnover x Net Profit Margin. Devised by EI Du Pont de Nemours & Co in 1919 to appraise financial performance.
du pont formula is in the Accounting & Auditing, Banking, Commerce & Finance and Statistics, Mathematics, & Analysis subjects.
du pont formula appears in the definition of the following term: du pont system
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