Rabu, 26 Juni 2013

DuPont Analysis (example) Part 2



Since we already have the data, now we can analysis for each company using Dupont three part analysis.
Perusahaan A
2011
2010
2009
ROE
0.2749
0.4232
0.3015
Tax burden
0.7494
0.8291
0.7628
Interest burden
1.0659
1.0365
1.0869
EBIT Margin
0.2306
0.3913
0.2656
Asset Turnover
0.6088
0.5777
0.6949
Leverage
2.4515
2.1790
1.9701
Perusahaan B
2011
2010
2009
ROE
0.3086
0.3283
0.4113
Tax burden
0.7293
0.7568
0.7360
Interest burden
0.9171
0.9880
1.0044
EBIT Margin
0.1448
0.1441
0.1861
Asset Turnover
0.9431
1.0711
1.1401
Leverage
3.3779
2.8445
2.6234
Perusahaan C
2011
2010
2009
ROE
0.0698
0.1205
0.2650
Tax burden
0.9248
0.6977
1.2875
Interest burden
0.4022
0.7919
0.6499
EBIT Margin
0.0431
0.0549
0.0610
Asset Turnover
1.5369
1.5009
1.8280
Leverage
2.8183
2.6459
2.8398

Now we already have the result of our calculation by using three point Dupont analysis. We can begin the analsysis by looking at four important part the ROE, EBIT, Asset Turnover, and Leverage.
ROE
 Perusahaan  A has strong ROE over 3 years. According  resul the range is between 27% - 42%, with the highgest result is in 2010 with 42.3 %. Perusahaan B’s ROE has range between 30% - 41%. Perusahaan C has a down trending ROE.  In 2009 it was strong at 26% (above the average).  In 2010 it matched the S&P 500 30 year average at around 12%.  Then in 2011 it fell well below the average to 7%.
EBIT
EBIT is one profit indicator for company so if investor want to know if company is profitabel they can see the EBIT value of company. If we compare the three company above we can see that perusahaan A has the strongest EBIT. Perusaaan B also have a strong in profit margin but they has also a drop in 2011. Perusahaan C is weakest of all three company, in 2011 the EbIT value is less than a third of perusahaan A.
Asset Turnover
Perusahaan A is the weakest of three company in this point but even with low asset turnover they still have a high value of EBIT so investor would still consider to looking into company. Perusahaan B has a fairly high asset turnover and quite consitent from year to year. Perusahaan C is the strongest in this point, their asset turnover is more than double of that perusahaan A and over 50% higher than perusahaan B. This make up for their low profit margin.
Leverage
Perusahaan A has the least amount of leverage of three company. This low amount leverage and high value of ROE mean that a good portion of return are coming from sales or because effective management.
Perusahaan B has the highest leverage this mean that perusahaan B will be more affected during a downturn but would gain more in bull run. And now, finally we see that perusahaan C for the size and profit margin, their leverage would be considered high. In one side this mean that perusahaan C not only face the possibility of being hit hard in a bad economy and that meaning they do not have brand power to keep the customer and in other side their leverage hasn’t significantly change.    

Source: How to use DuPont Analysis for Financial Analysis  Soft-Drink Example _ The Financial    Intern.htm (dengan penyesuaiaan)

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