CFA® Exam Formulas App

Using this app, you can learn your level 1 & level 2 CFA exam formulas anytime and anywhere. Now – the Formulas App is in its trial mode – which means only a few formulas get generated. To gain unlimited access to our Free Formulas App you need to set up your account.

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Return on Equity (DuPont Analysis)
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\(ROE = \frac{NI}{EBT} \times \frac{EBT}{EBIT} \times \frac{EBIT}{R} \times \frac{R}{A} \times\frac{A}{E}=\\=\text{tax burden}\times{\text{interest burden}}\times\\\times{\text{EBIT margin}}\times{\text{asset turnover}}\times{\text{leverage}}\)

  • \(ROE\) - return on equity
  • \(NI\) - net income
  • \(EBT\) - earnings before taxes
  • \(EBIT\) - earnings before deducting interest and taxes
  • \(R\) - revenue
  • \(A\) - average total assets
  • \(E\) - average shareholders' equity

DuPont analysis is about the decomposition of ROE into its components.

It gives us the answer to the following question: What factors drive the changes in the ROE?

As we can see ROE is a function of: tax rate, interest burden, operating profitability, efficiency, and leverage.

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The app contains all formulas for the level 1 & level 2 CFA exams

Formulas can be filtered by topics, readings and importance

Formulas are randomly generated each time you click the "Apply" button

After you learn a given formula you can mark it as memorized

You can add personal notes to each formula

The app is mobile-friendly, so you can use it on the go

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