DuPont analysis and Micropayments: Difference between pages

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imported>Doug Williamson
(Create page. Source - CFI - https://corporatefinanceinstitute.com/resources/knowledge/finance/dupont-analysis/)
 
imported>Doug Williamson
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''Financial analysis - ratio analysis.''
''Payment systems''.


DuPont analysis is a form of financial ratio analysis.
Micropayments are those other than business to business (B2B) transactions.


It is based on the insight that key financial ratios can be broken down, in turn, into two or more component ratios.
For example, the large number of relatively small payments made by customers to businesses (C2B).
 
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 ]]
*[[C2B]]
* [[Financial analysis]]
*[[C2C]]
* [[Goal congruence]]
*[[P2P]]
* [[Leverage]]
*[[Payments and payment systems]]
* [[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:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Technology]]

Latest revision as of 15:37, 5 June 2018

Payment systems.

Micropayments are those other than business to business (B2B) transactions.

For example, the large number of relatively small payments made by customers to businesses (C2B).


See also

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