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DU PONT Ratio: A comprehensive measure of business performance

Author

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  • Panayiotis Courtis

Abstract

In this paper we present and compare various financial measures of business performance which are becoming progressively more comprehensive culminated with the HOB model which is the expanded form of DU PONT ratio. We allege that DU PONT - ROE model can be used as a measure of strategy success. We also consider it is a superior indicator in the long run. It mergers all necessary and meaningful information of financial statements reflecting supply and demand factors which are largely determined by industry and firm specific factors. Further decomposition of ROE according to HOB model make more clear the internal and external environment assessment and explains more fully the value creation process contributing considerably to strategic management process.

Suggested Citation

  • Panayiotis Courtis, 2003. "DU PONT Ratio: A comprehensive measure of business performance," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 21-34, January -.
    • Handle: RePEc:ers:journl:v:vi:y:2003:i:1-2:p:21-34
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    Citations

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    Cited by:

    1. Panayiotis Curtis & Michael Hanias & Eleftherios Kourtis & Michael Kourtis, 2021. "Financial Performance Assessment οf Strategy for Building Resilience and Readiness in the Hotel Sector of Greece," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(2), pages 3-27.
    2. Michael Kourtis & Panayiotis Curtis & Michael Hanias & Eleftherios Kourtis, 2021. "A Strategic Financial Management Evaluation of Private Hospitals’ Effectiveness and Efficiency for Sustainable Financing: A Research Study," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 1025-1054.
    3. Anirban Basu, 2016. "Stopping Territory Infringement: Case Analysis by Anirban Basu," Vision, , vol. 20(3), pages 255-257, September.
    4. Panayiotis Curtis & Jonh Thalassinos, 2005. "Equity fund raising and “creative” accounting practices: Indications from Athens Stock Exchange for the 1999-2000 period," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 127-127.
    5. Eleftherios Kourtis & Michael Kourtis & Panayiotis Curtis & Michael Hanias, 2022. "Sustainable Business Growth, Value Creation and Dynamic Competitive Advantage: The Greek Pharmaceutical Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 46-79.
    6. Bumbescu Sorina Simona, 2020. "Analysis of Economic Performance in Agriculture Using Econometric Modeling," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(3), pages 118-128, September.
    7. Almudena Martinez-Campillo & Roberto Fernandez-Gago, 2008. "The Diversification-Performance relationship in Spanish Firms: Does The CEO/S Behaviour Style matter?," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 57-70.
    8. Panayiotis G. Curtis & Michael Hanias & Eleftherios Kourtis & Mixalis Kourtis, 2020. "Data Envelopment Analysis (DEA) and Financial Ratios: Α Pro-Stakeholders’ View of Performance Measurement for Sustainable Value Creation of the Wind Energy," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 326-350.

    More about this item

    Keywords

    Du Pont ratio; Profitability analysis; competitiveness measurement;
    All these keywords.

    JEL classification:

    • G - Financial Economics

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