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Du Pont Analysis In The Production And Preservation Of Meat

Author

Listed:
  • ELEONORA IONELA FOCSAN

    (Universitatea „1 Decembrie 1918” Alba Iulia, Romania)

  • VASILE CRISTIAN IOACHIM MIRON

    (Universitatea „1 Decembrie 1918” Alba Iulia, Romania)

  • IOANA JELER (POPA)

    (Universitatea „1 Decembrie 1918” Alba Iulia, Romania)

Abstract

Du Pont analysis is a type of performance investigation of an entity, which identifies the strengths and weaknesses of performance and internal factors that influence its increase or decrease. In a Du Pont analysis the following rates are involved: economic rate of return, rate of return on equity and return on sales rate. This article attempts to correlate these rates with the profit, to identify risks that threaten the company. At the same time, it tries to develop a new method of correlation which involves all three rates. This method was applied to one of the largest companies in the meat industry in Romania, to see if this analysis is feasible. Analysis result does not fully meet expectations, leading to the proposal of another way to link all the variables. The proposal involves all three rates of the previous analysis, which were taken two by two. Another method of calculation is the determinant of the matrix which involves all the rates. In the end, the results of these new methods will be rigorously analyzed.

Suggested Citation

  • Eleonora Ionela Focsan & Vasile Cristian Ioachim Miron & Ioana Jeler (Popa), 2015. "Du Pont Analysis In The Production And Preservation Of Meat," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 140-146, February.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:1ii:p:140-146
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    References listed on IDEAS

    as
    1. Fred D. Arditti, 1967. "Risk And The Required Return On Equity," Journal of Finance, American Finance Association, vol. 22(1), pages 19-36, March.
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    Keywords

    Du Pont analysis; ROA; ROE; ROS;
    All these keywords.

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