DuPont Analysis Research Articles

Study on the Influencing Factors of the Profitability of A-share Listed Catering Companies Based on DuPont Analysis

This study aims to determine the financial indicators that affect the profitability of Chinese A-share listed catering companies. The literature shows that more profitable companies are often more competitive and can also bring greater returns to investors. Therefore, it seems very necessary to identify the factors that affect the profitability of A-share listed catering companies. This study was based on the samples of the four catering companies,Tongqinglou,Guangzhou Restaurant ,Quanjude Group,Xi’an Catering,listed on China A-shares from 2018 to 2022. In order to determine the indicators affecting the profitability of the listed catering companies, based on DuPont analysis ,I conducted a large number of data analysis on the financial statements of these four companies and preliminarily determined 12 indicators. In order to determine the significance of the impact of each indicator on profitability, I used correlation analysis for screening.And finally, seven indicators were determined, namely: Return on equity, Return on total asset,Sales profit margin, Cost profit margin, Earnings per share , Total assets turnover ratio, and Profit rate on fixed assets.

Study on the Financial Risks of Listed Airlines-Based on Air China Case Study

With the development of the scientific economy, air transport has become an important mode of transport in people's daily travel, and after the financial crisis in 2008, China's aviation industry has shown rapid development and good development opportunities - the average annual growth rate of passenger turnover exceeds 8%. However, there are still many problems in the development of China's aviation industry. All this is reflected behind the fact that China's aviation industry is facing great financial risks, and financial risks, as a common problem for listed companies, can have an impact on the operation and sustainable development of the company. In particular, the airline industry has been severely impacted by the global outbreak of the COVID-19 and the business environment has further deteriorated. It has therefore become particularly important for airlines to effectively identify and prevent financial risks in the complex macro environment and market context. This paper looks at the financial risks that listed airlines will face. Based on the annual reports of airlines, it explores the potential financial risks in the daily operations of airlines from real data, and makes suggestions on how to identify financial risks and make effective early warning and solution measures. Finally, using Air China as a case study, this paper explores the company's financial risks through financial statement analysis and DuPont analysis, and conclude and outlook on the above analysis.

Influence of Marketing Expenses on the Profitability of the Listed Manufacturing Companies in Tanzania

In recent decades, marketing expenses have been one of the subjects that have taken much attention internationally due to the influence it has on the day-to-day business activities of different business companies. Several studies have been done on the relationship between marketing expenses and business companies’ profitability globally. However, there are limited studies that used DuPont analysis to examine the responding variable (profitability). To bridge this gap, this study examined the influence of marketing expenses on the profitability of listed manufacturing companies in Tanzania guided by the marketing mix theory. The study used an explanatory research design whereby all data for the response variables were collected from the financial reports of the six listed manufacturing companies. This study further used 84 observations or cross-sectionals from a population of six LMCs. Descriptive and correlation analysis and pooled OLS were used for data analysis with a help of EViews. The census as a sampling technique was used to consider all 6 LMCs. The results have indicated that marketing expenses have a negative influence on the profitability explained by DuPont. This implies that if companies want to successfully increase their profitability, then they must relatively reduce their spending on marketing their products.

In-office needle arthroscopy is a cost-effective alternative for operating room diversion in medial meniscectomy: a financial analysis

BackgroundIn-office needle arthroscopy (IONA) has been described as a diagnostic alternative to magnetic resonance imaging (MRI) for intra-articular pathology. However, few studies have analyzed its impact on cost and wait times when used as a therapeutic intervention. The purpose of this study was to investigate the impact on cost and wait times associated with offering IONA for partial medial meniscectomy as an alternative to traditional operating room (OR) arthroscopy for patients with irreparable medial meniscus tears on MRI.MethodsTwo models were created comparing the existing care pathway (current state) to a proposed future state utilizing IONA. Data sources were accounting data from an academically affiliated hospital in Canada and supplemented with literature values. A Monte Carlo simulation combined with DuPont analysis running 10,000 simulations was conducted to calculate the revenue, expenses, profits, and effect on surgical waitlists (i.e., throughput) between the states. Sensitivity analyses examined the influence of patient preference and revision rates on profit and throughput. Two-sample Student’s t test was performed (p < .05).ResultsAn average of 198 (standard deviation (SD) 31) patients underwent arthroscopic meniscectomy or repair each year from 2016 to 2020. The IONA revision rate was calculated as 20.3%. Compared to the current state, annual expenses in the IONA pathway were significantly reduced ($266,912.68 versus $281,415.23, p < .0001), while improving throughput by 21.2% (3.54%). Sensitivity analysis revealed 10% of patients need to select IONA over traditional OR arthroscopy with the revision rate remaining below 40% for the proposed state profit to be higher than the current state.ConclusionsIONA is a cost-effective alternative to traditional OR arthroscopy in patients undergoing partial medial meniscectomy. The next steps are to assess patients’ perceptions of IONA as an alternative to traditional OR arthroscopy, and to carry out clinical trials to determine the efficacy, patient-reported outcome metrics, and complications of IONA.

The Use of a Method of Du Pont to Assess Rentabilitas PT Unilever Indonesia Tbk a Period of the Year 2020 - 2021

The du pont method is the approach that will be used in the process of analyzing financial statements. Activity ratio analysis for profit on sales margin is a key component of the du pont method, which is used to calculate the company's profit. The purpose of this study is to assess the level of rentability of PT Unilver Indonesia Tbk in the period 2020 – 2021. This research uses a descriptive approach with quantitative data types. The results of the study using du pont analysis showed that the return on equity decreased which was influenced by the return on assets and equity multiplier, but the decrease in return on equity of -8.16 was more dominantly influenced by the return on assets showing a decrease of -15.98%. The decrease in return on assets was influenced by asset turnover and net profit margin which decreased by -3.80% and -12.65%, respectively, indicating that the company was not optimal in managing its assets to generate sales and the company had not been optimal in reducing expenses to achieve optimal profits.

The Growth Trajectory of Netflix: A Financial Analysis and Future Outlook in the Wake of the COVID-19

This academic report offers a comprehensive overview of Netflix, a leading streaming video service provider. The report presents an analysis of the various aspects of Netflix's business, including its commercialization and distribution strategies, research and development activities, financial performance, and competition in the industry. Furthermore, the report explores Netflix's unique corporate culture, emphasizing the company's commitment to producing high-quality original content and its innovative business model. The report also provides a financial analysis of Netflix's performance from 2019 to 2022, including an analysis of the balance sheet, income statement, cash flow statement, financial ratios, and Du-Pont analysis. The report concludes with a summary of Netflix's financial highlights and an outlook for the company. Overall, this academic report provides a comprehensive and insightful analysis of Netflix's business and financial performance, highlighting the company's position as a leader in the industry and its potential for continued growth.

Analysis Regarding Pfizer's 2019-2020 Financial Report

Pfizer keeps making a positive difference in the world for the benefit of countless patients, according to the 2021 Pfizer Annual Report. The outbreak of COVID-19 has sent Pfizer's results skyrocketing, while Pfizer has also used the data to satisfy its stakeholders and the general public. This essay conducts an objective analysis of Pfizer's annual financial statements for 2019-2021, including balance sheet analysis, income statement analysis, cash flow statement analysis, financial ratio analysis, and Du-pont analysis. The research demonstrates an overall upward trend in Pfizer's revenues. It is primarily motivated by sales growth across the Pfizer portfolio. The company's net income grew because of increased revenue and the implementation of cost-cutting measures. Pfizer kept a solid financial position and a healthy cash balance, allowing it to invest in R&amp;D, make strategic acquisitions, and return value to shareholders through dividends and share repurchases. Ultimately, the financial report demonstrates Pfizer's dedication to driving long-term growth and creating value for its stakeholders.

Understanding Tesla's Financial Strength: Analysis of Financial Reports and DuPont Analysis

Incorporated in 2003, Tesla motors, inc is a leading American automotive company named after electrical engineer and physicist Nikola Tesla. Tesla designs develop, manufactures, and sells high-end fully electric vehicles and advanced electric vehicle powertrains. Meanwhile, it has established its global selling network, service centers, and supercharger station. With a focus on sustainability and innovation, Tesla has set the standard for the industry and is leading the charge toward a brighter future. This essay will suggest the company’s history, products, and business strategy. Additionally, according to some previous research about the company, a financial analysis will be conducted to examine the company’s financial performance. The revenues, sales scale, income, capital structure, and key ratios will be shown in it. This analysis will also provide insight into Tesla’s financial stability and its earing ability in the future. This analysis will look at the firm's distinctive approach to technology, design, and marketing, as well as its impact on other organizations and sectors. Overall, the research will show that Tesla is not a vehicle firm, but rather a major pioneer in the fields of sustainable energy and transportation.

Financial and Marketing Strategy Analysis of Amazon

Amazon (Amazon.com) is the biggest online retailer in the world and a well-known cloud service provider. Amazon began as an online bookstore but has now evolved into a web-based company primarily specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence (AI) services. The company, which uses an Amazon-to-buyer sales model, has a massive product selection and inventory that allows customers to purchase almost everything, including clothing, household products, furniture, toys, jewelry, books, movies, electronics, pet supplies, and gourmet food. This paper selects the annual report data of Amazon from 2017 to 2021, analyzes the indicators of its profitability, solvency and operating capacity, and evaluates its profit model from a financial perspective in combination with DuPont analysis and cash flow analysis.

Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries

The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic valueadded indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital.

Study of Financial Performance of Cement Industry by Using Du-pont Analysis

This study attempts basically to measure the financial performance of the Cement Industry taking Ten major companies listed in BSE like ACC Ltd, Ambuja Cement Ltd, Birla Corporation Ltd, Damila Bharat Ltd, JK Cement Ltd, Jk Laxmi Cement Ltd, Prism Cement Ltd, Ramco Cement Ltd, Star Cement Ltd, Ultratech Cement Ltd for the period 2011-2021. In order to achieve our goals in this paper we have measured the ratios of ROE, ROA applying the DuPont analyses, which have been demonstrated with the aim of tables to show the change periodically. DuPont analysis (ROI and ROE)) is an important tool for judging the operating financial performance. It is an indication of the earning power of the firm.DuPont Model, which is based on analysis of Return on Equity (ROE) &amp; Return on Investment (ROI). The return on equity disaggregates performance into three components: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Return on Investment consists of Assets Turnover and Profit Margin. The return on investment consists of Assets Turnover (Operating Income X Total Assets) and Profit Margin (EBIT X Operating Income).In conclusion, ROE &amp; ROI is the most comprehensive measure of profitability of a firm. It considers the operating and investing decisions made as well as the financing.

Performance Evaluation of Industrial and Commercial bank of China based on DuPont Analysis

Performance Evaluation of Industrial and Commercial bank of China based on DuPont Analysis

Türkiye’de Ulaştırma Firmalarının Finansal Performansı ve Piyasa Değerini İncelemede Panel Dupont Regresyon Yaklaşımı

Bu çalışmada panel veri modelleri ve Dupont analizinin bir kombinasyonu kullanılarak Türkiye’de yer alan ulaştırma sektörü şirketlerinin finansal performansı ve piyasa değerleri incelenmiştir. Çalışmada halka açık ulaştırma sektörü firmalarının, 2017 Q3 – 2022 Q2 arası dönemleri kapsayan finansal bilgileri kullanılmış ve hangi faktörlerin şirket performansına ve piyasa değerine etki ettiği araştırılmıştır. Finansal performans modeli sonuçları karlılığın ve verimliliğin performansı pozitif yönde etkilediği, öte yandan borç kullanımındaki artışın performansı düşürdüğünü göstermiştir. Piyasa değeri modeli sonuçları şirket karlılığının ulaştırma sektörü firmalarının piyasa değerlerinde anlamlı bir etkisi bulunmadığını, öte yandan borç kullanımının ve verimliliğin artışının şirketlerin piyasa değerlerine pozitif yansıdığını göstermektedir. Araştırmanın bulguları ulaştırma sektöründeki şirket yöneticileri, finansal yatırımcılar ve paydaşlar için birçok pratik uygulamalar ve öneriler sunmaktadır.

A Study of 4 Automobile Companies in China through DuPont Analysis

A Study of 4 Automobile Companies in China through DuPont Analysis

Analysis of Financial Condition of Chinese Listed Real Estate Companies Based on DuPont Analysis Method: A Case Study of China Evergrande Real Estate

Analysis of Financial Condition of Chinese Listed Real Estate Companies Based on DuPont Analysis Method: A Case Study of China Evergrande Real Estate

A Study of Financial Performance Using DuPont Analysis in a Supply Chain

This study attempts to assess the financial performance of a supply chain company. In order to achieve the objective, this study has analysed the financial ratios applying the DuPont analysis, which has been demonstrated with tables to show the company's performance trend for five years (2018-2022). DuPont analysis is based on the analysis of Return on Equity (ROE) and Return on Assets (ROA). The ROE disaggregates performance into three components: • Net Profit Margin, • Total Asset Turnover, and • The Equity Multiplier The return on investment consists of Assets Turnover (Operating Income × Total Assets) and Net Profit Margin (EBIT × Operating Income). From the study, it is found that: • The company under study is more efficient in managing assets to generate profits than the use of equity to generate profits. • The company is, on average, a low-risk firm for investors and shareholders. • ROE and ROA are the most comprehensive measure of the profitability of a firm as well as a compass for making operating, investing, financing, and leverage-related decisions. Based on these findings, it is recommended that: Management of the company needs to do an operational overhaul to sustain the significant areas of strength and overcome the weakness evident in the financial statements.

Profitability and risk-return comparison across health care industries, evidence from publicly traded companies 2010-2019.

We conducted the first profitability comparison study across health care industries in the United States, using the DuPont Analysis framework. The combination of Return on Equity (ROE) and ROE volatility was used to provide a comprehensive "risk-return" approach for profitability comparison. Based on the 2010-2019 financial disclosures of 1,231 publicly traded health care companies in the U.S. that reported positive assets and equity, we estimated the industry-specific fixed effects on ROE and its three components-profit margin, asset utilization, and financial leverage-for ten industries in the health care sector, classified by the Global Industry Classification Standard (GICS). For each industry, we also estimated its fixed effects on ROE volatility. We found that the pharmaceuticals industry and biotechnology industry have lower ROE-mainly driven by their relatively low profit margin and low assets utilization-and higher ROE volatility than other health care industries. We also found that the health care facilities industry relies most on debt financing. This study demonstrates a holistic approach for profitability comparison across industries.

A COMPARATIVE STUDY ON SELECTED INDIAN BANKS' FINANCIAL RATIOS FOR THE PERIOD FROM FY 2017–2021

The main aim of this paper is to analyse how an organisation or a companys financial performance can be determined using the financial ratios. This research examines the performance of the commercial banking industry from FY 2017 to FY 2021. For the stated time periods, financial statements of Indian banks including SBI, PNB, BOI, HDFC, ICICI, and YES Bank were retrieved from databases including annual reports, EMIS, money control, yahoo finance, and Google finance. A financial ratio is a mathematically defined connection between two accounting data (or simply as a ratio). Ratios aids in the qualitative assessment of the firms financial performance and the summarization of vast amounts of financial data. In this study, financial measures for liquidity, activity, leverage, profitability, and market value will be used to analyse the financial statements of these institutions. For the liquidity test we are using: CR(Current ratio), and QR(Quick ratio). The following metrics were used to determine profitability: NPM (net profit margin), PM (profit margin), ROE (return on shareholder equity), ROA (return on assets). PE ratios and EPS were used to assess market-based activity. KEYWORDS: Performance analysis, financial ratios, Dupont Analysis, Public sector banks, Private sector banks

Direct and Indirect Implications of the COVID-19 Pandemic on Amazon’s Financial Situation

We provide theoretical and empirical insights into the impact of COVID-19 on Amazon’s financial position. A longitudinal case study of Amazon’s financial situation during the 2016–2020 period, and time-series analysis, ratio analysis, and DuPont analysis, are employed as a quantitative methodology to explore Amazon’s financial situation changes before and after the COVID-19 pandemic. As for the robustness of the in-depth analysis, we compare Amazon’s financial performance and position with Walmart. The result shows that the COVID-19 pandemic did not have a huge negative impact on the companies’ financial performance because of its promotion of their development. However, this study provides an in-depth analysis of the influence of COVID-19 on Amazon’s financial situation, which financial aspects are most affected by COVID-19, which are not, and the company’s response to COVID-19. Therefore, this study sheds light on the accounting literature to demonstrate the impact of COVID-19 on Internet companies’ financial performance and provides some reference values for subsequent academic research.

Financial Performance for Arab Bank using DuPont Analysis 2000-2021

In today’s business environment, financial analysis is considered one of the most reliable tools to judge performance, especially in the banking sector. The present study investigates the financial performance of one of the most famous and highest profitable banks in Jordan, the Arab Bank. It examines the Arab Bank’s financial performance from 2000 to 2019 by adopting the DuPont system of financial analysis of return on equity (ROE) model. This method relies on three main elements, which are net profit margin (NPM), total assets turnover (TAT), and equity multiplier (EM). The main scope of this study is to analyze the profitability and efficiency of the Cooperative for one of the Jordanian banks. Dupont Analysis provides an indicator of the stockholders’ wealth using the ROE index. Secondary data was used by accessing the official website of the Arab Bank and obtaining the financial information by analyzing the annual reports. The study finds that the Arab Bank has maintained stability over two decades with slight fluctuations in the ROE despite the international financial crises. On the other hand, NPM and TAT have witnessed relative strength from 2000 to 2019. Furthermore, EM indicates constant indicators for the period of 2000-2005 while the ratios from 2006 -2019 have diminished, which means the financial leverage of the Arab Bank lately was less dependent on the debts to finance the assets.