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The Determining Of Wal-Mart Efficiency Using “Du Pont” Formula

Author

Listed:
  • Iuliana Militaru

    (Romanian American University)

  • Elena Lucia Croitoru

    (Romanian American University)

  • Zoltan-Fabian Mehes

    (Romanian American University)

Abstract

The purpose of this paper is to study the efficiency of a company using “Du Pont” and implicitly the most common and important ratios (such as ROE and ROA) taking into consideration the cash flow and dividend payout. The impact that this figures have on the average company growth and how it could be improved lowering the dividend payout or improving the ROE and/or ROA. Due to the importance of “Du Pont” formula this study aims to show how different indicators depend on one another when you are trying to run a financial analysis on a company. How different indicator or ratios can mean one thing in a certain situation that doesn`t apply in general, especially when the analysis scope is to find a sustainable growth.

Suggested Citation

  • Iuliana Militaru & Elena Lucia Croitoru & Zoltan-Fabian Mehes, 2015. "The Determining Of Wal-Mart Efficiency Using “Du Pont” Formula," Romanian Economic Business Review, Romanian-American University, vol. 10(2), pages 109-118, June.
    • Handle: RePEc:rau:journl:v:10:y:2015:i:2:p:109-118
    as

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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU15/REBE-SU15-A9.pdf
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    References listed on IDEAS

    as
    1. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    2. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    Full references (including those not matched with items on IDEAS)

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