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Dupont.py
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Dupont.py
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#This is a file to determine the DuPoint values of a Balance sheet
print(""" This program is designed to help you calculate the Dupont Framework.
Select an option from below:
1. Return on Equity
2. Profitability (Profit Margin)
3. Efficency (Asset Turn Over)
4. Leverage """
)
MenuOption = int(input("Menu Option: "))
if MenuOption == 1:
print("""
Return on Equity shows the return that a business generated during a period
on the equity invested in the business by the owners of the business.
Return on equity is calculated by dividing net income by total onwers
equity. While this is a useful measure of financial performance of a firm,
it can be broken down further to reveal where the returns are being
generated (and where you can improve)""")
Profit_Margin = float(input("Please enter your profit margin: "))
Efficency = float(input("Please enter your Asset Turn Over: "))
Leverage = float(input("Please enter your leverage: "))
print("Return of Equity =" + "{:.2%}".format(Profit_Margin * Efficency * Leverage))
elif MenuOption == 2:
print("""
Profitability reveals how much profit is left from each dollar of sales after all
expenses have been subtracted.""")
Net_income = float(input("Please enter your net income: "))
Sales = float(input("Please enter your total sales: "))
print("\n Profit Margin = " + "{:.2%}".format(Net_income/Sales))
print(""" \n To calculate further profitability ratio's select from the menu below:
1. Gross Profit Margin
2. Earnings before interest after taxes (EBIAT) -in progress """)
Profitability_ratios_menu = int(input("select an option from above: "))
if Profitability_ratios_menu == 1:
print(""" Gross Profit Margin tells us what percentage of renvue is left to cover
other expenses after the costs of goods sold is subtracted """)
Gross_Profit = float(input("Gross Profit: "))
print("\n Gross Profit Margin = " + "{:.2%}".format(Gross_Profit / Sales ))
elif Profitability_ratios_menu == 2:
print("""
Earnings before interest after tax (EBIAT) is a measure of how much income the business
has generated while ignoring the effects of financing and captial structure, or
the proportion of debt that the business has.""")
#Come back to me
elif MenuOption == 3:
print("""Asset Turnover tells us how well a business is using its assets to produce sales """ )
Sales = float(input("Please enter your total sales: "))
Assets = float(input("Please enter the toal value of your assets: "))
print("\n Asset Turn Over = " + "{:.2%}".format(Sales/Assets))
elif MenuOption == 4:
print(""" Leverage ratios is also known as the equity multiplier. This measures the impact of
all non-equity financing, or debt of all sorts, on the firm's ROE.""")
Average_Total_Assets = float(input("Enter your Average total assets: "))
Average_Equity = float(input("Enter your average Equity: "))
print("\n Leverage = ", Average_Total_Assets / Average_Equity)