The Study of Factors that may Influence the Performance by the Dupont Analysis in the Furniture Industry

Burja, Vasile; Marginean, R.

doi:10.1016/s2212-5671(14)00794-1

Cited by 32 publications

(19 citation statements)

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“…These are disaggregated based on fundamental theoretical interrelations, such as the so-called DuPont identity or the financial leverage effect (Bunea et al 2019). Empirical studies on profitability often use the parameters of such decomposition models as predefined sets of independent variables for regression models on profitability (Burja and Marginean 2014) or as subjects of specific research (Mishra et al 2012). A further step in the decomposition of profitability can be made by considering dynamic changes of these elements over time or by referring to differences regarding specific reference points (Lesáková et al 2019), which is an important element of the present study.…”

Section: Earnings Before Interest and Taxes Rocementioning

confidence: 99%

European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

Beyer¹,

Hinke²

2020

AGR ECON-CZECH

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In this study, differences in common measures of profitability, such as return on sales, return on capital employed and return on equity, are analysed in agricultural firms with accrual accounting in 10 European countries. The resulting differences in profitability are broken down using an additive decomposition method, which addresses the quantified impact of several affecting factors. This approach is based on a ratio system, which follows the principles of the DuPont identity. According to the general intention of benchmarking, the leading country within the sample for each measure of profitability provides the relevant reference point, representing best practice. This approach provides insight into the specific comparative strengths and weaknesses of the agribusinesses in the countries within the sample and indicates useful starting points for effective improvements. In addition to the value-creating operations, this involves, in particular, labour productivity, the efficient use of fixed assets and the degree of debt financing.

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Section: Earnings Before Interest and Taxes Rocementioning

confidence: 99%

European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

Beyer¹,

Hinke²

2020

AGR ECON-CZECH

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“…La revisión de la literatura aplicada muestra distintas aplicaciones en contextos específicos. Se registran trabajos y aproximaciones al diagnóstico y medición de eficiencia financiera mediante el modelo Dupont; además, muchos de los autores coinciden en afirmar que este tipo de análisis es una herramienta propicia para el análisis de las razones financieras (Van Voorhis, 1981;Fairfield & Yohn, 2001;Dehning & Stratopoulos, 2002;Collier, McGowan & Muhammad 2010;Soares & Galdi, 2011;García, 2011;Botika, 2012;Chang, Chichernea & HassabElnaby, 2013;Vargas, Barrett & Cordero, 2013;Stancu, Stancu & Oproiu, 2013;Burja & Mărginean, 2014).…”

Section: Modelo Dupont: Estado Del Arte Y Fundamentaciónunclassified

“…Burja & Mărginean (2014) plantean un modelo Dupont para descomponer la rentabilidad de los recursos propios en la industria pesada, encontrando la ausencia de correlaciones positivas con respecto a la cartera y al ingreso neto, lo que muestra la necesidad de infusiones de capital de inversión destinadas a mejorar y aumentar los activos de la empresa; asimismo, para el caso de análisis proponen formas de incrementar la rentabilidad basadas en recursos propios y no a través de un mayor endeudamiento sobre la tasa mínima de rotación de activos.…”

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Una aproximación financiera al potencial exportador de las comercializadoras internacionales de confecciones mediante un dupont estocástico

Morales

López

Sierra

et al. 2016

Rev. fac. cien. econ.

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<em><span>Este trabajo cuantifica el impacto que tiene la eficiencia, el margen de utilidad y el apalancamiento financiero sobre el desempeño exportador de las comercializadoras internacionales de confecciones, haciendo uso de un análisis Dupont estocástico. En primera instancia se utiliza una simulación de Montecarlo para modelar el sistema Dupont, aproximando todas las cifras del balance general y el estado de resultados a las distribuciones de probabilidad de mejor ajuste, produciendo una cifra para explicar el rendimiento del patrimonio y de la inversión de este tipo de empresas. Luego, a través de un análisis de sensibilidad, mediante @Risk, se determina el impacto de las variables explicativas (eficiencia, margen y apalancamiento) en el comportamiento del Índice Dupont proyectado. Se encuentra que las empresas en estudio tiene una clara debilidad financiera, y que el sector muestra una baja eficiencia en el uso de los recursos.</span></em>

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“…It provides an excellent framework for getting a quick overview of corporate strengths and weaknesses. The DuPont equation has largely been using by practitioners for explaining the corporate financial performance and by scholars to study sectors of activity (Burja and Marginean R, 2014;Kijewska, 2016). When dealing with specific sustainable issue, either the DuPont formula should be transformed into the sustainable growth DuPont formula, with a "sustainability" oriented meaning of constant capital resource, or should be enlarged in a more integrated framework (Castro and Chousa, 2006) to introduce a larger list of drivers specifically related with a "sustainability" dimension like environment, social or governance.…”

Section: Introductionmentioning

confidence: 99%

Is Listed Corporates Financial Performance Vulnerable? ROE Factors measurement Using DuPont Formula

Ricordel¹,

Majláth²

2019

EJSD

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It’s been 10 years since the last financial crisis, and the rising in stock market price along with record dividends raises deep concerns about the sustainability of listed corporate financial performance. Has the narrow logic of shareholder value been compromising long term financial performance leading to a financial crisis? We question here the DuPont equation to track financial performance drivers over time for discussing about its vulnerability. A disaggregated five-steps DuPont equation is used to set up following drivers: operational profitability, asset turnover, leverage multiplier, interest and fiscal burden. We draw a statistical analysis of those drivers with a panel data of 43 international non-financial corporates from France, Germany, Hungary and Italy between 2012 and 2017. The results stress the role of fiscal burden, interest burden and operational profit as the main ROE driver. Leverage multiplier driver, consensually considered as more financially vulnerable, has played an astonishing negative role. The drop in asset turnover is however the more worried signal as this factor is the most sustainable. Keywords: ROE components, DuPont equation, Financial sustainability, Listed corporate performance, Financial reporting

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The Study of Factors that may Influence the Performance by the Dupont Analysis in the Furniture Industry

Cited by 32 publications

References 0 publications

European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

Una aproximación financiera al potencial exportador de las comercializadoras internacionales de confecciones mediante un dupont estocástico

Is Listed Corporates Financial Performance Vulnerable? ROE Factors measurement Using DuPont Formula

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