scholarly journals Using DuPont analysis to assess the financial performance of the top 3 JSE listed companies in the food industry

2016 ◽  
Vol 13 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Mishelle Doorasamy
Keyword(s):  
Financial Performance ◽  
Food Industry ◽  
Financial Analysis ◽  
Investment Decisions ◽  
Listed Companies ◽  
Strategic Decisions ◽  
Return On Assets ◽  
Return On Equity ◽  
Dupont Analysis ◽  
Measure Of Performance

This study attempts to measure the financial performance of the food industry taking the top three JSE listed companies Pioneer Foods, Tiger Brands and RCI for the period of 2013-2014. In order to achieve the objectives of this research, ratios such as return on equity (ROE), return on assets (ROA) have been calculated by applying the DuPont analysis. The DuPont analysis is an important tool to measure the operating performance of a firm (Sheela and Karthikeyan, 2012). The volatility of the stock market makes investment decisions a controversial issue for most investors. Investments of huge amounts of money need proper analysis in order to make an informed decision. Financial statements are indicators of the profitability and financial sustainability of the business. Ratios are tools used to quantify the risk element before making any strategic decisions, more especially, investment decisions. It has been reported to be one of the most important financial ratios, because it provides investors with a more comprehensive measure of performance (Demmer, 2015). A detailed financial analysis of all three companies using the DuPont system shows that investing in Tiger Brands would generate a higher return to shareholders than Pioneer Foods or RCI

scholarly journals Analisis Kinerja Keuangan berdasarkan Rasio Keuangan pada PT. BPR. Saptacristy Utama

2017 ◽  
Author(s):  
NI LUH KOMANG AYU PRADNYANI ◽  
I NYOMAN GEDE USTRIYANA ◽  
I GUSTI AYU AGUNG LIES ANGGRENI
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Financial Analysis ◽  
Financial Institution ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Return On Equity ◽  
Leverage Ratio ◽  
Capital Adequacy Ratio ◽  
Net Profit

Analysis of Finece Performance Base on Fund Finance Ratio of PT. BPR. Saptacristy UtamaRural Banks (BPR) is a formal financial institution that has a function as a financialintermediary, especially on the national microfinance system. The study aimed tofind out the financial performance of PT. BPR. Saptacristy Utama when it wasanalyzed based on the financial ratios during the period of 2011 to 2015. Based onthe results of the financial analysis, liquidity ratio is categorized good, when viewedfrom the average cash ratio and the average loans to deposit ratio. The solvency ratiois said to be good, judging by the average capital adequacy ratio. Activity ratio isquite good when viewed from the multiplier leverage ratio and asset utilization ratiothat continue to increase. The profitability ratio is classified to be good,as can beseen on the average net profit margin, return on assets and return on equity. PT. BPR.Saptacristy Utama is expected to maintain its financial performance by strengtheningits business activities to increase the amount of its assets, the amount of thedistribution of funds in the form of loans and the placement of funds in other banksshould also be increased, revenue of operations and profits for subsequent yearsshould beincreased, as well as improving sale and service to its customers andprospective customers.

scholarly journals Conducting Business with God: Is God Blessing Islamic Banks with Better Financial Performance than Conventional Banks?

2019 ◽  
Vol 6 (2) ◽  
pp. 40
Author(s):  
Musaed S. Alali
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Stock Exchange ◽  
The Other ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Difference ◽  
Kuwait Stock Exchange ◽  
Conventional Banks

This study aims to compare the financial performance between Islamic and conventional banks listed at Kuwait stock exchange over the period 2011-2018 using the modified DuPont model of financial analysis which is based on the analysis of return on equity (ROE). Unlike previous studies where researchers compared the performance on a bank-to-bank basis, this study examines the aggregate ratios of Islamic banks and compare it to aggregate ratios of conventional banks. The study also adds volatility into the model since consistency in returns indicated a more stable sector.  Results obtained from this study showed that conventional banks in Kuwait had a better mean performance during the study period in terms of both return on assets (ROA) and return in equity (ROE), Islamic banks also showed a higher deviation in these two ratios resulting in a lower Sharpe ratio. While the results showed no statistically significant mean difference between Islamic and conventional banks in terms of return on assets (ROA), the results also showed a statistically significant difference in mean return on equity (ROE) between the two sub-sectors.  On the other hand, Islamic banks showed an impressive improvement in their ratios during the last three years of the study period which impose a real threat to conventional banks in the future.

scholarly journals Relationship between Company Financial Performance, Characteristic and Environmental Disclosure of ASX Listed Companies

2018 ◽  
Vol 73 ◽  
pp. 10024 ◽  
Author(s):  
Wahyuningrum Indah Fajarini Sri ◽  
Budihardjo Mochamad Arief
Keyword(s):  
Financial Performance ◽  
Listed Companies ◽  
The Other ◽  
Environmental Disclosure ◽  
Return On Assets ◽  
Return On Equity ◽  
Corporate Social Disclosure ◽  
Earnings Per Share ◽  
Sample Data ◽  
Corporate Social

The study expects to find positive relations between company financial performance, company characteristics, auditing firm, and the extent of company environmental disclosure. The sample data used in this study is 200 largest Australian listed companies (ASX) in 2014. In order to explain the corporate social responsibility practices in Australian companies, this study used stakeholder and legitimacy theories. The measurement of company environmental disclosure in this study involves nine indicators of environmental disclosure index based on Environmental Social and Governance (ESG). More specifically, the statistical analysis indicates that earnings per share, return on equity, type of company, size of company, age of company, and auditing firm positively influence the company environmental disclosure. On the other hand, the results showed that return on assets has no relationship with company environmental disclosure. Overall, this study has added some information about corporate social disclosure studies focused on environmental disclosure of largest Australian companies.

scholarly journals Penilaian Kinerja Keuangan 5 Perusahaan Perbankan Terbesar Periode 2010-2012 Menggunakan DuPont System

2013 ◽  
Vol 4 (2) ◽  
pp. 834-840
Author(s):  
Theresia Lesmana
Keyword(s):  
Financial Performance ◽  
Central Asia ◽  
Financial Institutions ◽  
Financial Analysis ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Market Capitalization ◽  
Net Profit ◽  
Financial Aspect

Assessment of corporate performance can be viewed from financial aspect and nonfinancial aspect. This study attempted specifically to measure financial performance by using the DuPont system of financial analysis. DuPont system disaggregates performance into three components. They are Net Profit Margin (NPM), Return on Assets (ROA) and Return on Equity (ROE). Object of this study is five largest financial institutions based on market capitalization and go public. Those five financial institutions are Bank Republik Indonesia (Persero) Tbk (BBRI), Bank Central Asia Tbk (BBCA), Bank Mandiri (Persero) Tbk (BMRI), Bank Negara Indonesia (Persero) Tbk (BBNI) and Bank Danamon Indonesia Tbk (BDMN). The financial performance of five banks was measured for three periods, from 2010 until 2012. It was found that only Bank Negara Indonesia (Persero) Tbk is the best financial performance using DuPont System.

scholarly journals NEXUS BETWEEN INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: AN INVESTIGATION OF CHINESE MANUFACTURING INDUSTRY

2020 ◽  
Vol 0 (0) ◽  
pp. 1-19
Author(s):  
Jian Xu ◽  
Feng Liu
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Manufacturing Industry ◽  
Listed Companies ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit ◽  
Chinese Manufacturing Industry ◽  
The Impact

How to manage financial performance through the utilization of intellectual capital (IC) is an important issue in the knowledge economy. The objective of this study is to investigate the impact of IC on financial performance for manufacturing listed companies in the Chinese context. Financial performance is measured from two distinct aspects: (1) firm profitability, measured through earnings before interest, taxes, depreciation and amortization (EBITDA), net profit margin (NPM), and gross profit margin (GPM), and (2) corporate return, measured through return on investment (ROI), return on assets (ROA), and return on equity (ROE). The results show a positive relationship between NPM, GPM, ROI, ROA, ROE, and IC (measured through the market-to-book ratio). In addition, the more intangible-intensive manufacturing listed companies exhibit better financial performance. The study provides evidence that higher investment in IC can improve value creation in the emerging economies.

INTEGRATED REPORTING AND FINANCIAL PERFORMANCE

2017 ◽  
Vol 16 (2) ◽  
pp. 101 ◽  
Author(s):  
Luk Pui Wen ◽  
Yap Kiew Heong, Angeline ◽  
Lim Chee Hooi, Simon
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Positive Impact ◽  
Listed Companies ◽  
Potential Contribution ◽  
Integrated Reporting ◽  
Return On Assets ◽  
Return On Equity ◽  
And Performance ◽  
International Integrated Reporting Council

ABSTRACT     Although the consciousness of Integrated Reporting (IR) is increasing within Malaysian companies, how IR creates value for their business is not completely understood. This paper attempts to investigate the potential contribution of IR implementation to the financial performance of the top 50 Malaysian public listed companies during the period of 2012 to 2015. The eight (8) IR content elements from the International Integrated Reporting Council (IIRC) framework are examined to predict the adoption rate of IR in relation to financial performance. This includes disclosure on organizational overview and external environment, governance, business model, risks and opportunities, strategy and resource allocation, performance, outlook, and basis of preparation and presentation. The data indicates that Malaysian PLCs reported more than 50% for every content element, except Basis of Preparation and Presentation (CE8).  Data analysis indicates that among the eight (8) content elements, four (4) of them, namely governance, business model, risks and opportunities, and performance disclosure, have significant positive impact on financial performances.  The finding of this paper provides insight into the contribution of IR in effecting the maintenance of business resilience and competitiveness in a fluctuating market. Therefore, this paper provides a significant impetus for implementation of IR among the Malaysian companies.     Keywords: Integrated Reporting, International Integrated Reporting Council, Malaysian Public Listed Companies, Return on Assets, Return on Equity

scholarly journals Impact of Non-Interest Income on Financial Performance of Joint Venture Banks in Nepal

2018 ◽  
Vol 3 (2) ◽  
pp. 107-124
Author(s):  
Ajay Kumar Shah ◽  
Niraj Agarwal ◽  
Ram Kumar Phuyal
Keyword(s):  
Financial Performance ◽  
Joint Venture ◽  
Return On Assets ◽  
Return On Equity ◽  
Letter Of Credit ◽  
Service Charge ◽  
Interest Income ◽  
Guarantee Income ◽  
Result Analysis ◽  
The Relationship

 The research was conducted to identify the non-interest income variables that will likely affect the financial performance of the joint venture banks of Nepal. The main objective of the study is to analyze the prominence of non-interest income and its effect on financial performance of joint venture banks in Nepal. This study will help the banks to identify other sources of income of the bank and try to look at its impact on the overall profitability and risk intention. To measure the financial performance, the indicator of profitability i.e. returns on assets and return on equity are taken into consideration for the study as a dependent variable and assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee as an independent variable. Both descriptive and inferential analyses were performed to capture the relationship. From the result analysis, it is observed that the non-interest income variables that would affect the financial performance of the joint venture banks. It is observed that not all variables have equal effect on the profitability as measure of financial performance, for joint ventures the factors like assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee have a significant relationship with the measure of financial performance that is return on assets and return on equity. Apart from the interest income, there are lot of non-interest variables which leads to profitability so the banks looking to increase its profitability with lesser risk need to take these variables into consideration. Results indicate that banks need to keep the non-interest income variables into consideration at times for improving the financial performance of the joint venture banks.

Risk disclosure and financial performance: the case of Islamic and conventional banks in the GCC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayman E. Haddad ◽  
Hussain Alali
Keyword(s):  
Financial Performance ◽  
United Arab Emirates ◽  
Best Practice ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Gcc Countries ◽  
Conventional Banks

Purpose This study aims to explore the extent of risk disclosure (RD) among conventional banks (CBs) and Islamic banks (IBs) listed on stock markets in the Gulf cooperation council (GCC). It also examines the influence of RD on the banks’ financial performance as measured by return on assets (ROA) and return on equity (ROE). Design/methodology/approach This study uses content analysis to examine RD in the annual reports of 16 CBs and 14 IBs in the GCC for a sample of 240 firm-year observations over the period 2007 to 2014. Findings The study shows no significant differences between the RD reported in the annual reports of CBs and that of IBs. On average, a CB reported 234 sentences while an IB disclosed 244 sentences of RD in its annual report. The authors also find that both types of banks had an upward trend over the periods. While the means of RD reported by CBs have significantly improved over the period, the RD reported by IBs has not. Similar results are also found when the authors compared the RD pre- and post-financial crisis period. Finally, the authors find that there is a significant association between RD and both models of financial performance (ROA and ROE) for IBs, after controlling other variables. However, RD has a significant association with only ROE for CBs. Research limitations/implications The bank selection was restricted to publicly traded banks in the GCC. Other financial institutions and different types of industries were not considered. Further research could determine whether the results obtained in this study could be generalized to different industries in the GCC and or in other countries. Practical implications This study provides evidence on the significant association between RD and the financial performance of CBs and IBs in GCC countries. This study could be helpful to regulatory authorities in encouraging banks to adopt the best practice of RD and thus promote banks’ transparency. Originality/value This is the first known study to examine the RD practices of both types of banks and their association with banks’ financial performance in five-GCC countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Bahrain), based on a longitudinal analysis of year-end annual reports, covering eight years period from 2007 to 2014.

scholarly journals The Impact of Political Connections on the Performance and Solvency of Canadian Financial Institutions

2016 ◽  
Vol 8 (11) ◽  
pp. 1
Author(s):  
Saidatou Dicko
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Composite Index ◽  
Negative Influence ◽  
Political Connections ◽  
Return On Assets ◽  
Return On Equity ◽  
The Impact

<p style="margin: 0cm 0cm 0pt; text-align: justify; line-height: 150%;">This article’s main goal is to analyze the impact of political connections on the financial performance of Canadian financial institutions. Data on Canadian financial institutions from the S&amp;P/TSX Composite Index over a five-year period was analyzed, and the results demonstrate that contrary to previous studies on companies in other industries, political connections had a negative influence on solvency, return on assets and return on equity for these Canadian financial institutions. Only the market-to-book ratio was positively and significantly influenced by political connections.</p>

scholarly journals Debt Financing and Firm Performance: Evidence from an Emerging South-Asian Country

2019 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Mohammad Mazibar Rahman ◽  
Umme Khadija Kakuli ◽  
Shahnaz Parvin ◽  
Ayrin Sultana
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Negative Influence ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Total Debt

This paper aims to empirically investigate the impact of capital structure choice on the firm performance of the firms listed under the Dhaka Stock Exchange of Bangladesh. Multiple regression has been employed in this research to determine the relationship between the capital structure and the firm’s financial performance. Three ratios of financial performance, i.e., return on assets, return on equity, and gross margin, have been used as a sample of non-financial Bangladeshi companies, selected from 2010 to 2015. The study records numerous findings. First, the result shows a significant negative influence of long-term debt (LTD) and total debt (TTD) on firm financial performance measured by return on assets (ROA), but no significant relationship is found between short-term debt (STD) and this measure of firm’s financial performance. Moreover, the research found that there is no significant effect of short-term debt, long-term debt and total debt on the firm financial performance measured by return on equity (ROE). Finally, the result shows that a significant negative influence of short-term debt and total debt on firm performance measured by GM, but no significant relationship was found between long-term debt and financial performance. In general terms, the results of this study may suggest that capital structure has a negative influence on firms’ financial performance in Bangladesh.

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