How to Use the DuPont Model

Profitability Analysis
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claude rougeot
Management Consultant, Cote Divoire (Ivory Coast)
🔥NEW Hello, DuPont Model is a very ancient formula and it is very useful. In the simpler expression = EBIT / Revenue * Revenue / funds engaged =. Funds engaged = fixed assets plus working capital needed. The first term of formula gives the result of the management work, what is the margin produced! The second term indicates the productivity of funds committed in a business. My professional speciality is the study of investments and to raise funds to finance the project. Heavy industry, large commercial margin and low productivuty of capital. How many $ I produce with one $ of investment. At the opposite, light industry, low margin and high productivity of funds invested. In my case, the taxation and modality of financing are not taken in consideration in a first appraisal. The last is completed by the IRR calculation. With the two, Dupont Model simplfied and IRR you can advise companies in a first appraisal of projects (large spectrum at the beginning).. From my point of view, the (...) Read more? Sign up for free

  Wes Patterson
United States
 

Multi-year Dupont Model

I have found that a single year snapshot of the Du (...)

  claude rougeot
Management Consultant, Cote Divoire (Ivory Coast)
 

Dupont Model Contributions

Dear Wes, Thank you for this comment. Usually, f (...)

 

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