Flagship explainer

What drives A. O. Smith Corporation’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity29%Tax burden76%net income ÷ pretax incomeInterest burden98%pretax ÷ operating incomeOperating margin19%operating income ÷ revenueAsset turnover1.20×revenue ÷ average assetsEquity multiplier1.71×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$546MFY2025
Income before tax$715MFY2025
Operating income$729MFY2025
$3.8BFY2025
Ending assets$3.1BFY2025
Beginning assets$3.2BFY2024
$1.9BFY2025
$1.9BFY2024
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
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AOS dupont explainer — Buy Like Buffett · Buy Like Buffett