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Intensity and Extensity of Firm Development and Dynamic Dupont Analysis

Author

Listed:
  • Jiri Mihola
  • Jana Kotesovcova
  • Petr Wawrosz

Abstract

The paper introduces two types of indicators that can extend financial (ratio) analysis. The first ones are dynamic intensity and extensity parameter that show if a firm develop in intensively or extensively and count impact of intensive and extensive factors. The second type contains indicators extending DuPont analysis about counting how the change of Profit Margin, Total Assets Turnover and Leverage Factor affects change Return on Equity. Both types of indicators concentrate on firm development and they are able indicate whether a firm develop in the right direction. They can be easily count using basic firm data founding in balance sheet, profit and loss statement or cash flow statement.

Suggested Citation

  • Jiri Mihola & Jana Kotesovcova & Petr Wawrosz, 2016. "Intensity and Extensity of Firm Development and Dynamic Dupont Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 53-63.
    • Handle: RePEc:ers:journl:v:xix:y:2016:i:4:p:53-63
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    References listed on IDEAS

    as
    1. Maynard, Jennifer, 2013. "Financial Accounting, Reporting, and Analysis," OUP Catalogue, Oxford University Press, number 9780199606054.
    2. Konstantinos Liapis & Antonios Rovolis & Christos Galanos & Eleftherios Thalassinos, 2013. "The Clusters of Economic Similarities between EU Countries: A View Under Recent Financial and Debt Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 41-66.
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    More about this item

    Keywords

    financial (ratio) analysis; dynamic intensity and extensity parameter; DuPont analysis and its dynamic;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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