Flagship explainer

What drives CARVANA CO.’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 equity60%Tax burden−102%net income ÷ pretax incomeInterest burden−73%pretax ÷ operating incomeOperating margin9%operating income ÷ revenueAsset turnover1.87×revenue ÷ average assetsEquity multiplier4.61×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$1.4BFY2025
Income before tax−$1.4BFY2025
Operating income$1.9BFY2025
$20.3BFY2025
Ending assets$13.2BFY2025
Beginning assets$8.5BFY2024
$3.4BFY2025
$1.3BFY2024
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
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CVNA dupont explainer — Buy Like Buffett · Buy Like Buffett