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Dupont analysis Assignment

   

Added on  2021-02-21

8 Pages2338 Words80 Views
Dupont analysis

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................1CONCLUSION ..............................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONDupont analysis is concept that measure the fundamental business performance over theyears by the Dupont corporations (Hammoudeh and McAleer, 2013). This evaluation is useful tothe business entity know the business position in the market. This analysis is starts from theprofit structure of a company and assess all the data such as financial position, return oninvestment, financial ratio, cash flow, charts and the relevant information to an organisation.This reports covers the analysis of income statement, financial statement, ratio, charts, cash flow,cost of equity etc. In this reports all the data that are related to company are being asses so thatmanagement can make the decision regarding the company's performance. MAIN BODY Dupont analysis:It is used to measure the element parts of a entity's return of equity. It determines thecontribution of the financial activities that changes in ROE. Dupont analysis = Net profit margin * Assets turnover ratio * Financial leverage Ratio 20142015201620172018Profit margin 33.90%23.80%13.70%9.60%4.90%Assetsturnover0.590.580.490.490.46Financialleverage 1.151.131.121.111.1ROE2315.597.515.222.47here, Net profit margin = net income / sales Assets turnover ratio = sales / total assetsfinancial leverage = total assets / total equity As per the Dupont analysis Profit margin of the company is decreasing from 2014. It clearlyrepresent that it continuously reducing after the year of 2014 from 33.90% to 4.90% and it1

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