DuPont Analysis part 1

DuPont Analysis

(example)

In Dupont analysis there are three forms of dupont analysis the two part, three part and five part analysis in this example we will using the three forms analysis. First before we started, we must know the formula of three part analysis. The three part analysis are :

1.      ROE = (NI / Avg TA) * (Avg TA / Avg ShEq)

ROE = ROA * Leverage

2.      ROE = (NI / Rev) x (Rev / Avg TA) x (Avg TA / Avg ShEq)

ROE = Net Profit Margin  x  Asset Turnover  x  Leverage

3.      ROE = (NI / EBT) x (EBT / EBIT) x (EBIT / Rev) x (Rev / Avg TA) x (Avg TA / Avg ShEq)

ROE = Tax Burden  x  Interest Burden  x  EBIT Margin  x  Asset Turnover  x  Leverage

Where :

ROE = Return on Equity
NI = Net Income
Avg TA = Average Total Assets
Avg ShEq = Average Shareholder Equity
Rev = Revenue
EBT = Earnings before Taxes
EBIT = Earnings before Interest and Taxes

Since we already have the formula know let’s see the data :

Perusahaan A	2011	2010	2009	2008
ROE	27.5 %	42.3 %	30.1 %
NI	8,570.00	11,809.00	6,824.00
TA	79,974.00	72,921.00	48,671.00	40,519.00
Avg TA	76,447.50	60,796.00	44,595.00
ShEq	31,365.00	31,003.00	24,799.00	20,472.00
Avg ShEq	31,284.00	27,901.00	22,635.00
Rev	46,542.00	35,119.00	30,990.00
EBT	11,439.00	14,243.00	8,946.00
EBIT	10,732.00	13,741.00	8,231.00
Perusahaan B	2011	2010	2009	2008
ROE	30,9%	32,8%	41,1%
NI	6,443.00	6,230.00	5,946.00
TA	72,882.00	68,153.00	39,848.00	35,994.00
Avg TA	70,517.50	54,000.50	37,921.00
ShEq	20,588.00	21,164.00	16,804.00	12,106.00
Avg ShEq	20,876.00	18,984.00	14,445.00
Rev	66,504.00	57,838.00	43,232.00
EBT	8,834.00	8,232.00	8,079.00
EbiT	9,633.00	8,332.00	8,044.00
Perusahaan C	2011	2010	2009	2008
ROE	7.0%	12.0%	26.5%
NI	37.60	54.70	81.50
TA	1,508.90	1,529.20	873.80	873.10
Avg TA	1,519.05	1,201.50	873.45
ShEq	555.80	522.20	386.00	229.20
Avg ShEq	539.00	454.10	307.60
Rev	2,334.60	1,803.30	1,596.70
EBT	40.50	78.40	63.30
EbiT	100.70	99.00	97.40