**Du pont formula, **

### Definition of Du pont formula:

Mathematical equation that shows relationship between return on investment (ROI), asset turnover, and profit margin. 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. Also called du pont system.

Meaning of Du pont formula & Du pont formula Definition