The DuPont Equation a formula that shows thst the rate of return on equity can be found as the product of profit margin,total assets turnover,and the equity multiplier.it shows the relationship among asset management,debt management,and profitability ratio. ROE=ROA*Equity multiplier=Profit margin*Total assets turnover*Equity multiplier=(Net income/Sales)*(Sales/Total assets)*(Total assets/Total common equity)