I-Hui's Blog

Business Strategic Research

April 17th, 2012

DuPont Analysis for Southwest Airlines Co. (2008-2010)

DuPont analysis is an expression which breaks ROE (Return on Equity) into three parts. Basic formula is as listed below: ROA = (Net profit/Sales)*(Sales/Assets) = Net profit/Assets ROE = (Net Profit/Equity) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity) = (Profit margin)*(Asset turnover)*(Equity multiplier) · Profitability (measured by Profit Margin=Net profit/Sales) · Operating efficiency (measured by Asset Turnover=Sales/Total Assets) · […]

Self made Southwest Airlines Videos

Related articles Going Green: It’s Electric, Southwest! (blogsouthwest.com)