DUPONT ANALYSIS - Accounts and Finance for Managers

This was an analysis established by the DUPONT INC. ,USA to study the Return on investment. It was the first company developed the chart which depicted the influences of Return on Investment. The company underwent for the consideration two important ratios for the return on investment is Net profit ratio and Capital turnover ratio A change in the any one of the two ratios that will immediately reflect on the Return on investment. The various associated factors are considered to study the impact of the profitability of the firm. This type of analysis to correct the problems not only to identify the with specific cause which drastically affects the profitability but also to find the possible ways and means to improve the profitability. Having developed the chart for analysis was called as DUPONT Chart.


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