imported>Doug Williamson |
imported>Administrator |
Line 1: |
Line 1: |
| ''Financial analysis - ratio analysis.''
| | Leptokurtic frequency distribution. |
| | |
| DuPont analysis is a form of financial ratio analysis.
| |
| | |
| It is based on the insight that key financial ratios can often be broken down, in turn, into two or more component ratios.
| |
| | |
| Examining the component ratios, in turn, may yield further insights and opportunities for improvement.
| |
| | |
| | |
| For example, Return on Equity can be broken down into three components:
| |
| | |
| *Net profit margin;
| |
| *Asset turnover; and
| |
| *Leverage.
| |
| | |
| | |
| Measuring and targeting different managers and corporate functions appropriately, can ensure that everyone is pulling in the same direction.
| |
| | |
| This consistency is sometimes known as ''goal congruence''.
| |
| | |
| | |
| The ratios are sometimes set out in a pyramid-shaped diagram, with the analysis being known as the ''DuPont pyramid of ratios''.
| |
| | |
|
| |
|
| == See also == | | == See also == |
| * [[Asset turnover ]] | | * [[Leptokurtic frequency distribution]] |
| * [[Financial analysis]]
| | |
| * [[Goal congruence]]
| |
| * [[Leverage]]
| |
| * [[Net profit margin]]
| |
| * [[Price to earnings ratio]]
| |
| * [[Profitability]]
| |
| * [[Profitability ratio]]
| |
| * [[Ratio analysis]]
| |
| * [[Return on equity]]
| |
|
| |
|
| [[Category:Financial_management]]
| |
| [[Category:Knowledge_and_information_management]]
| |
| [[Category:Planning_and_projects]]
| |
| [[Category:Accounting,_tax_and_regulation]]
| |
| [[Category:The_business_context]]
| |
| [[Category:Corporate_finance]]
| |