Jun 19, 2011

The DuPont Analysis

I realise that a lot of my focus in recent times has been on personal skills. Here is a post on a related topic , what to change

Dupont analysis is used to illustrate how different factors impact important indicators of financial performance. As such, this can be used to compare companies in a specific industry.This can also be used to conduct 'what-if' analysis.

A change agent starting of analysis on what to change can enter basic information in the model (e.g. sales,liabilities,costs,equity etc) and then get a basic view of current profitability.

This can then be used to identify where possible improvements can be made and their effects.

1 comment:

  1. This reminds me of my prof at SP Jain..Dr Mankad.Thank for your bringing in your perspective here. Would be able to share if you have a matrix showing Du Pont analysis connecting to What-If through various data points, please ?