Advantages And Disadvantages Of Dupont

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EXECUTIVE SUMMARY this report contains on how DuPont analyses theory is used to compare companies working in the same field of expertise.
Also what are the advantages and disadvantages of this theory for the financial managers.
Case study on apple.inc has also been useful.

OBJECTIVES

This report has information on dupont analyses the company and how its theory is world wide popular.
• About DuPont company and its theory
• Advantages and disadvantages of DuPont
• Case study on apple company

INTRODUCTION

The name du Pont is taken from the company du Pont corporation which started using this formula and it spread worldwide
Its formula is return on investment is equal to profit margin multiplied
…show more content…
total asset is equal to the sum of total debt and total owner equity.

DISADVANTAGES AND ADVANTAGES OF USING DUPONT ANALYSIS

Disadvantages of DuPont analysis is that as the managers would collect numbers and numbers of pages regarding the past balance sheet both from the beginning to the end, it would give a reason to managers not to give the financial records nothing more than a passing glance. This would create lot of time wastage.
Financial analyses should give the company’s managers information on what the company has on its past performance and would rather give them suggestions on how to improve the future results.
And also help the firma mangers on how to prioritize their work to get better results.
These are some of the disadvantages which the company’s managers have to face using the DuPont analyses.

Disadvantages of DuPont analysis is that as the managers would collect numbers and numbers of pages regarding the past balance sheet both from the beginning to the end . it would give a reason to managers not to give the financial records nothing more than a passing glance. This would create lot of time

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