ASSESSMENT OF THE RETURN ON EQUITY OF AN ENTERPRISE USING THE DUPONT METHOD
Journal Title: Journal of Economic Research & Business Administration - Year 2023, Vol 144, Issue 2
Abstract
The article discusses the principle of asset profitability analysis based on the DuPont model. The profitability of equity was described on the basis of three basic formulas for calculating the model and used in the analysis.The subject of the study is the development of the enterprise of JSC “Caspian Oil” for 2019-2021. The purpose of the study is to evaluate the effectiveness and factor analysis of the company. To achieve this goal and objectives, formulas for calculating indicators and the Dupont method were used.The analysis of return on equity on the example of JSC “Caspian Oil” using the DuPont three-factor model and the analysis based on the indicator of the open annual report 2019-2021. The change in net return on assets was revealed due to three factors, namely an increase in net profit, a slowdown in asset turnover and a deterioration in the capital structure.As a result of the work, it turned out that one of the most important and meaningful coefficients is ROE (return on equity). It shows the effectiveness of the use of shareholders’ funds and the company in question is a joint-stock company. Using a factor analysis of the profitability of an oil and gas company, the authors showed that the growth of net profit, equity and profitability are more sensitive to changes in net profit by the same percentage
Authors and Affiliations
B. S. Kishibayeva,G. N. Jaxybekova
Keywords
Related Articles
- EP ID EP719862
- DOI 10.26577/be.2023.v144.i2.05
- Views 119
- Downloads 0
Development of the theory and practice of the global e-commerce market
E-commerce is a promising direction for the development of trade, as it uses innovative digital technologies, provides comfort and accessibility in the purchase of goods and services, promotes...
SUKUK: FUNDAMENTAL PROPERTIES AND PERSPECTIVES OF DEVELOPMENT IN KAZAKHSTAN
The emerging and rapidly developing Islamic capital market has become an integral part of the modern financial system, providing not only Islamic but also traditional financial institutions with new market instruments f...
THE EFFICIENCY OF THE ACCOUNTING INFORMATION SYSTEM IN BUSINESS
The purpose of this article is to study the influence of success factors or the effectiveness of an accounting information system, namely the quality of the system, information, service and training, on the organizationa...
DEVELOPMENT OF ENTREPRENEURSHIP IN THE REPUBLIC OF BELARUS: STRATEGY AND TACTICS
The strategy and tactics of the development of small and medium entrepreneurship (SME) is a great importance in the economic development of the country. Innovative, social directions of development depend on accurately d...
Methodology for assessing the effectiveness of public administration in the digital economy
The relevance of this article is due to the need to update the criteria for assessing the effectiveness of public administration for the conditions of Kazakhstan and bring them into line with the best world practices in...