Financial performance assessment using the DuPont analysis
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Abstract
This study aims to assess financial performance using DuPont analysis on technology sector companies listed on the Indonesia Stock Exchange with the three largest market capitalizations and positive net income in 2024. DuPont analysis is a method to evaluate company performance that serves to enhance a fundamental indicator, namely return on equity. Return on equity is used to measure the profit generated from the shareholders' perspective. The analysis is conducted using a quantitative descriptive design. The study results show that although DCII excels in the assessment of net profit margin and equity multiplier, the return on equity formed from the assessment of the three components: net profit margin, assets turnover, and equity multiplier indicates that MLPT outperforms DCII. This result indicates that MLPT is seen as more capable of providing potential investment opportunities than DCII for its investors
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How to Cite
Puspitaningtyas, Z. (2025). Financial performance assessment using the DuPont analysis. Enrichment : Journal of Management, 15(4), 454-460. https://doi.org/10.35335/enrichment.v15i4.2383
References
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Astuti, W. (2021). A Literature Review of Net Profit Margin. Social Science Studies, 1(2), 115–128. https://doi.org/10.47153/sss12.2262021
Bhagyalakshmi, K., & Saraswathi, S. (2019). A Study on Financial Performance Evaluation Using Dupont Analysis in Select Automobile Companies. International Journal of Management, Technology And Engineering, 9(1), 354–362.
Choudhary, K. K. (2020). DuPont Analysis of Hindustan Unilever Limited (HUL). 8(3), 2868–2872.
Da Cruz, A. F. R., & Sukoco, A. (2022). Financial Performance Analysis Using the Du Pont System Method (Study of PT. Indofood Sukses Makmur Tbk and PT. Tiga Pilar Sejahtera Food Tbk 2016-2020 Period). Jurnal Ekonomi, 22(1), 45–53. https://ejournal.worldconference.id/index.php/eko
Doorasamy, M. (2016). Using DuPont analysis to assess the financial performance of the top 3 JSE listed companies in the food industry. Investment Management and Financial Innovations, 13(2), 29–44. https://doi.org/10.21511/imfi.13(2).2016.04
Farisa, F. (2021). Financial Ratio Analysis in DU PONT SYSTEM to Measure Financial Performance PT. Terminal Teluk Lamong. IPTEK The Journal of Engineering, 6(3), 52. https://doi.org/10.12962/j23378557.v6i3.a7458
Handayani, N., & Winarningsih, S. (2020). The Effect of Net Profit Margin and Return on Equity Toward Profit Growth. Moneter - Jurnal Akuntansi Dan Keuangan, 7(2), 198–204. https://doi.org/10.31294/moneter.v7i2.8701
Kim, H.-S. (2016). A Study of Financial Performance using DuPont Analysis in Food Distribution Market. Culinary Science & Hospitality Research, 22(6), 52–60. https://doi.org/10.20878/cshr.2016.22.6.005
Muthohharoh, N., & Pertiwi, I. F. P. (2021). Pengaruh Likuiditas, Multiplier Equity, Keputusan Investasi dan Kebijakan Dividen terhadap Profitabilitas dengan Ukuran Perusahaan sebagai Variabel Moderating (Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di ISSI Periode 2016-2020). Accounting and Finance Studies, 1(4), 62–90. https://doi.org/10.47153/afs14.2502021
Nariswari, T. N., & Nugraha, N. M. (2020). Profit Growth : Impact of Net Profit Margin, Gross Profit Margin and Total Assests Turnover. International Journal of Finance & Banking Studies (2147-4486), 9(4), 87–96. https://doi.org/10.20525/ijfbs.v9i4.937
Nasution, U. H. (2017). Pengaruh Equity Multiplier dan Return on Equity (Studi Kasus Pada BUMN Sektor Konstruksi Periode 2012-2016). Jurnal Bisnis Corporate, 3(2).
Nemati, A. R., Javed, T., & Sidiqui, M. U. (2020). Impact of Asset Growth and Equity Multiplier on The Financial Performance of Microfinance Banks of Pakistan. International Journal of Management Research and Emerging Sciences, 10(2), 12–17.
Nurlaela, S., Mursito, B., Kustiyah, E., Istiqomah, I., & Hartono, S. (2019). Asset Turnover, Capital Structure and Financial Performance Consumption Industry Company in Indonesia Stock Exchange. International Journal of Economics and Financial Issues, 9(3), 297–301. https://doi.org/10.32479/ijefi.8185
Oktaviyah, N. (2024). Pengukuran Kinerja Keuangan: Pendekatan, Metode, dan Implikasinya dalam Pengelolaan Perusahaan. Bijac: Bata Ilyas Journal of Accounting, 5(3), 1–17. https://www.biznislinggau.com/ekonomi-bisnis/100811334554/usaha-kerajinan-ban-bekas-peluang-bisnis-yang-menguntungkan
Pal, R. (2021). Dupont Analysis of Power Grid Corporation of India Ltd.’S Financial Performance. International Journal of Creative Research Thoughts (IJCRT), 9(8), b389–b397. www.ijcrt.org
Panigrahi, A. K., & Vachhani, K. (2021). Financial analysis by return on equity (ROE) and return on asset (ROA)-A comparative study of HUL and ITC. Journal of Management Research and Analysis, 8(3), 131–138. https://doi.org/10.18231/j.jmra.2021.027
Prasetio, A. E., Al Azizah, U. S., & Daulay, Y. (2021). The Effect Of Total Assets Turnover, Current Ratio And Financial Technology On The Profitability Of Banking Companies In Indonesia. Jurnal Ilmiah Manajemen Dan Bisnis, 7(2), 253–262.
Puspitaningtyas, Z. (2017a). Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia. Investment Management and Financial Innovations, 14(1), 46–54. https://doi.org/10.21511/imfi.14(1).2017.05
Puspitaningtyas, Z. (2017b). Is Financial Performance Reflected in Stock Prices? December. https://doi.org/10.2991/icame-17.2017.2
Puspitaningtyas, Z. (2019). Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange. Banks and Bank Systems, 14(2), 24–39. https://doi.org/10.21511/bbs.14(2).2019.03
Puspitaningtyas, Z. (2023). Enrichment: Journal of Management Determinants of Profitability In Concept Of Going oncern. Enrichment: Journal of Management, 13(4), 1–7.
Ramu, S., & Satyanarayana, S. . (2019). Financial Performance Analysis of Hdfc Using Dupont Analysis. Economics & Computer Science (JCECS), 05(02), 46–52.
Shahnia, C., & Endri, E. (2020). Dupont Analysis for the Financial Performance of Trading, Service & Investment Companies in Indonesia. International Journal of Innovative Science and Research Technology, 5(4), 193–211.
Simanullang, C. D., Edward, Y. R., Ginting, R. R., & Simorangkir, E. N. (2021). The Effect of Return On Assets (ROA) and Return On Equity (ROE) On Company Value With Capital Structure As Moderating Variables In Banking Companies Listed On The Indonesia Stock Exchange. International Journal of Business, Economics and Law, 24(6), 129–134. www.idx.co.id
Tijjang, B., Sudirman, I., Efendy, T., & Tinggi IlmuEkonomiAmsirParepare, S. (2020). Analysis of Du Pont System in Measuring the Financial Performance. 22(10), 53–58. https://doi.org/10.9790/487X-2210085358
Timothy, A. S. (2022). A Study of Financial Performance Using DuPont Analysis in a Supply Chain. The International Journal of Business & Management, December. https://doi.org/10.24940/theijbm/2022/v10/i11/bm2211-017
Wright, S. (2016). A Case Study: Using The Dupont Approach For Formulating Managerial Decisions. Journal of Business Case Studies (JBCS), 13(1), 33–42. https://doi.org/10.19030/jbcs.v13i1.9859
Wulandari, P., Elwisam, & Digdowiseiso, K. (2023). The Influence of Current Ratio, Total Asset Turnover, Return on Assets, Company Size and Debt to Equity on Profit Growth in Property and Real Estate Companies Listed on the Indonesian Stock Exchange for the 2016 - 2020 Period. Jurnal Syntax Admiration, 4(3), 461–478. https://doi.org/10.46799/jsa.v4i3.898
Astuti, W. (2021). A Literature Review of Net Profit Margin. Social Science Studies, 1(2), 115–128. https://doi.org/10.47153/sss12.2262021
Bhagyalakshmi, K., & Saraswathi, S. (2019). A Study on Financial Performance Evaluation Using Dupont Analysis in Select Automobile Companies. International Journal of Management, Technology And Engineering, 9(1), 354–362.
Choudhary, K. K. (2020). DuPont Analysis of Hindustan Unilever Limited (HUL). 8(3), 2868–2872.
Da Cruz, A. F. R., & Sukoco, A. (2022). Financial Performance Analysis Using the Du Pont System Method (Study of PT. Indofood Sukses Makmur Tbk and PT. Tiga Pilar Sejahtera Food Tbk 2016-2020 Period). Jurnal Ekonomi, 22(1), 45–53. https://ejournal.worldconference.id/index.php/eko
Doorasamy, M. (2016). Using DuPont analysis to assess the financial performance of the top 3 JSE listed companies in the food industry. Investment Management and Financial Innovations, 13(2), 29–44. https://doi.org/10.21511/imfi.13(2).2016.04
Farisa, F. (2021). Financial Ratio Analysis in DU PONT SYSTEM to Measure Financial Performance PT. Terminal Teluk Lamong. IPTEK The Journal of Engineering, 6(3), 52. https://doi.org/10.12962/j23378557.v6i3.a7458
Handayani, N., & Winarningsih, S. (2020). The Effect of Net Profit Margin and Return on Equity Toward Profit Growth. Moneter - Jurnal Akuntansi Dan Keuangan, 7(2), 198–204. https://doi.org/10.31294/moneter.v7i2.8701
Kim, H.-S. (2016). A Study of Financial Performance using DuPont Analysis in Food Distribution Market. Culinary Science & Hospitality Research, 22(6), 52–60. https://doi.org/10.20878/cshr.2016.22.6.005
Muthohharoh, N., & Pertiwi, I. F. P. (2021). Pengaruh Likuiditas, Multiplier Equity, Keputusan Investasi dan Kebijakan Dividen terhadap Profitabilitas dengan Ukuran Perusahaan sebagai Variabel Moderating (Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di ISSI Periode 2016-2020). Accounting and Finance Studies, 1(4), 62–90. https://doi.org/10.47153/afs14.2502021
Nariswari, T. N., & Nugraha, N. M. (2020). Profit Growth : Impact of Net Profit Margin, Gross Profit Margin and Total Assests Turnover. International Journal of Finance & Banking Studies (2147-4486), 9(4), 87–96. https://doi.org/10.20525/ijfbs.v9i4.937
Nasution, U. H. (2017). Pengaruh Equity Multiplier dan Return on Equity (Studi Kasus Pada BUMN Sektor Konstruksi Periode 2012-2016). Jurnal Bisnis Corporate, 3(2).
Nemati, A. R., Javed, T., & Sidiqui, M. U. (2020). Impact of Asset Growth and Equity Multiplier on The Financial Performance of Microfinance Banks of Pakistan. International Journal of Management Research and Emerging Sciences, 10(2), 12–17.
Nurlaela, S., Mursito, B., Kustiyah, E., Istiqomah, I., & Hartono, S. (2019). Asset Turnover, Capital Structure and Financial Performance Consumption Industry Company in Indonesia Stock Exchange. International Journal of Economics and Financial Issues, 9(3), 297–301. https://doi.org/10.32479/ijefi.8185
Oktaviyah, N. (2024). Pengukuran Kinerja Keuangan: Pendekatan, Metode, dan Implikasinya dalam Pengelolaan Perusahaan. Bijac: Bata Ilyas Journal of Accounting, 5(3), 1–17. https://www.biznislinggau.com/ekonomi-bisnis/100811334554/usaha-kerajinan-ban-bekas-peluang-bisnis-yang-menguntungkan
Pal, R. (2021). Dupont Analysis of Power Grid Corporation of India Ltd.’S Financial Performance. International Journal of Creative Research Thoughts (IJCRT), 9(8), b389–b397. www.ijcrt.org
Panigrahi, A. K., & Vachhani, K. (2021). Financial analysis by return on equity (ROE) and return on asset (ROA)-A comparative study of HUL and ITC. Journal of Management Research and Analysis, 8(3), 131–138. https://doi.org/10.18231/j.jmra.2021.027
Prasetio, A. E., Al Azizah, U. S., & Daulay, Y. (2021). The Effect Of Total Assets Turnover, Current Ratio And Financial Technology On The Profitability Of Banking Companies In Indonesia. Jurnal Ilmiah Manajemen Dan Bisnis, 7(2), 253–262.
Puspitaningtyas, Z. (2017a). Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia. Investment Management and Financial Innovations, 14(1), 46–54. https://doi.org/10.21511/imfi.14(1).2017.05
Puspitaningtyas, Z. (2017b). Is Financial Performance Reflected in Stock Prices? December. https://doi.org/10.2991/icame-17.2017.2
Puspitaningtyas, Z. (2019). Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange. Banks and Bank Systems, 14(2), 24–39. https://doi.org/10.21511/bbs.14(2).2019.03
Puspitaningtyas, Z. (2023). Enrichment: Journal of Management Determinants of Profitability In Concept Of Going oncern. Enrichment: Journal of Management, 13(4), 1–7.
Ramu, S., & Satyanarayana, S. . (2019). Financial Performance Analysis of Hdfc Using Dupont Analysis. Economics & Computer Science (JCECS), 05(02), 46–52.
Shahnia, C., & Endri, E. (2020). Dupont Analysis for the Financial Performance of Trading, Service & Investment Companies in Indonesia. International Journal of Innovative Science and Research Technology, 5(4), 193–211.
Simanullang, C. D., Edward, Y. R., Ginting, R. R., & Simorangkir, E. N. (2021). The Effect of Return On Assets (ROA) and Return On Equity (ROE) On Company Value With Capital Structure As Moderating Variables In Banking Companies Listed On The Indonesia Stock Exchange. International Journal of Business, Economics and Law, 24(6), 129–134. www.idx.co.id
Tijjang, B., Sudirman, I., Efendy, T., & Tinggi IlmuEkonomiAmsirParepare, S. (2020). Analysis of Du Pont System in Measuring the Financial Performance. 22(10), 53–58. https://doi.org/10.9790/487X-2210085358
Timothy, A. S. (2022). A Study of Financial Performance Using DuPont Analysis in a Supply Chain. The International Journal of Business & Management, December. https://doi.org/10.24940/theijbm/2022/v10/i11/bm2211-017
Wright, S. (2016). A Case Study: Using The Dupont Approach For Formulating Managerial Decisions. Journal of Business Case Studies (JBCS), 13(1), 33–42. https://doi.org/10.19030/jbcs.v13i1.9859
Wulandari, P., Elwisam, & Digdowiseiso, K. (2023). The Influence of Current Ratio, Total Asset Turnover, Return on Assets, Company Size and Debt to Equity on Profit Growth in Property and Real Estate Companies Listed on the Indonesian Stock Exchange for the 2016 - 2020 Period. Jurnal Syntax Admiration, 4(3), 461–478. https://doi.org/10.46799/jsa.v4i3.898