25Aug 2017

RETURN ON EQUITY ANALYSIS USING DUPONT MODEL.

  • UG students, Mechanical Engineering Dept., Indian Institute of Technology, Delhi, India.
  • UG students, Civil Engineering Dept., Indian Institute of Technology, Delhi, India.
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This paper puts forward the DuPont model for three firms in the beverages industry namely ? Pepsi, Coke & Lehar. This model is a useful tool for comprehensive Final analysis of Return of Equity (RoE), an important indicator of firm?s ability to turn shareholder?s investment into profitable returns. In the paper, it is shown that Return of Equity (RoE) should not be the sole criteria to judge a firm?s financial well-being, therefore a gamut of intermediary indicators like EBIT, Asset turnover ratio etc. are enumerated for the firms for performance analysis through DuPont model. On the basis of the model, the relative performances of the three firms are put as conclusion profit margin, asset turnover, and equity multiplier.

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[Tushar Shani, Tinish Gupta, Nitish and Ankit Parashar (2017); RETURN ON EQUITY ANALYSIS USING DUPONT MODEL. Int. J. of Adv. Res. 5 (Aug). 1504-1508] (ISSN 2320-5407). www.journalijar.com

Tushar Shani
UG students, Mechanical Engineering Dept., Indian Institute of Technology, Delhi, India

DOI:

Article DOI: 10.21474/IJAR01/5210      
DOI URL: https://dx.doi.org/10.21474/IJAR01/5210

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