Operating Performance of Chinese Online Shopping Companies: An Analysis Using DuPont Components

Hao, Yue; Choi, Seung Uk

doi:10.3390/su11133602

Cited by 5 publications

(4 citation statements)

References 20 publications

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“…The DuPont system is a popular and often used method of analyzing a firm's returnon-equity ROE [63,64]. This indicator is calculated as the relation according to Formula (1):…”

Section: Theoretical Background Of Dupont Systemmentioning

confidence: 99%

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

et al. 2022

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Poland has a large potential for biogas production from agricultural sources and food waste. This potential is still poorly used. There are many reasons for this state of affairs. We can indicate both the policy of the state towards renewable energy sources (RES) with a small amount of energy from biogas contracted at auctions, investment risk, and especially low return on investment in the absence of investment support. An important reason is also the limited state budget. The purpose of this work was to determine the endogenous factors that determine ROE, the direction of the impact of these factors, as well as the strategy of biogas plants in shaping the ROE level. The DuPont model was used in the analysis of ROE changes. We used the deviation method to determine the impact of the various factors on ROE. Against the background of the energy sector in Poland, the value of ROE in the examined biogas plants should be considered satisfactory, and in 2020 it was, on average, 13.9%. The decrease from 17.2% in 2019 occurred despite the increase in energy prices and the increase in the net profit margin (NPM). It resulted from the reduction of ROE’s financial leverage through external capital. A high level of debt characterized the examined biogas plants, and the pursuit of risk reduction and debt reduction negatively impacts on ROE. This may indicate the need for state investment support at the plant construction stage or low-interest investment loans to develop biogas plants. In addition, using only price guarantees under the feed-in tariffs, with dynamic changes in costs, may bring the industry a relatively high investment risk compared to other RES, where the operational costs during the lifetime are low, as it is in PV or wind systems.

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“…The DuPont system is a popular and often used method of analyzing a firm's returnon-equity ROE [63,64]. This indicator is calculated as the relation according to Formula (1):…”

Section: Theoretical Background Of Dupont Systemmentioning

confidence: 99%

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

et al. 2022

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“…Market investors accurately judge the company's situation and make scientific and reasonable decisions. Hao and Choi (2019) used DuPont analysis to decompose the asset return rate into asset turnover rate and profit rate. A higher asset turnover rate indicates the effective use of assets, while a higher profit rate indicates an effective cost structure.…”

Section: Dupont Analysismentioning

confidence: 99%

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

Qin

Hassan

Adhikariparajuli

2022

JRFM

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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.

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“…Modeling Hao and Choi (2019) used DuPont analysis to examine specific features of Chinese online shopping by adding variables representing these features to a DuPont estimation equation. That approach is followed here by adding sustainable practices to the DuPont analysis.…”

Section: Sustainable Practices In Fashion Firmsmentioning

confidence: 99%

Sustainable practices and financial performance in fashion firms

Medcalfe

Miro

2021

JFMM

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PurposeThe purpose of this paper is to determine the relationship between sustainable practices and financial performance in fashion firms.Design/methodology/approachA statistical analysis (fixed effects and ordinary least squares) of publicly available financial data combined with sustainable practices taken from the Baptist World Aid Australia Ethical Fashion Reports to determine if companies with better sustainable practices have significantly better financial performance.FindingsThe research shows that there is a strong positive correlation between sustainable practices and financial performance in fashion firms. There is stronger evidence that better sustainable practices lead to better financial performance and vice versa.Research limitations/implicationsThe sample size is limited to publicly available financial data and may not be generalized to all fashion firms. A quarter of firms were unresponsive to Baptist World Aid Australia's requests for information on sustainable practices creating potential selection bias.Social implicationsConsumers, employees, government and non-governmental organizations are advocates for greater corporate responsibility in fashion firms. Given the positive relationship between sustainable practices and return on equity, shareholders can be added to this list.Originality/valueThis research is the first to analyze objective financial performance with a range of sustainable indicators to determine if certain practices are more valuable than others.

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Operating Performance of Chinese Online Shopping Companies: An Analysis Using DuPont Components

Cited by 5 publications

References 20 publications

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

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

Sustainable practices and financial performance in fashion firms

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