Annual Growth Rates Sales Assets Common Equity Earnings I Free Cash Flow to Investors Sustainable Growth Rate O 1 2 3 4 5 Profitability Return on Equity Return on Equity (b4 non-recurring) Return on Net Operating Assets Basic Dupont Model Net Profit Margin x Total Asset Turnover x Total Leverage 1 = Return on Equity Advanced Dupont Model Net Operating Margin x Net Operating Asset Turnover = Return on Net Operating Assets Net Borrowing Cost (NBC) Spread (RNOA - NBC) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A