Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability

This study attempts to evaluate whether adjusted Dupont ratio can have better prediction of future profitability (Return on Net Operating Asset) or decomposition of adjusted Dupont ratio to its components (net operating asset turnover and operating profit margin) can have better prediction of future...

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Autores principales:	Mohammad Arabmazar Yazdi, Behrooz jaberinasab
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2011
Materias:	adjusted dupont ratio adjusted dupont ratio components adjusted dupont ratio components changes Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/77846c57fafa4fa0ad9f9537b28c9610
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spelling	oai:doaj.org-article:77846c57fafa4fa0ad9f9537b28c96102021-11-04T19:41:02ZEfficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability2008-89142476-292X10.22103/jak.2011.21https://doaj.org/article/77846c57fafa4fa0ad9f9537b28c96102011-07-01T00:00:00Zhttps://jak.uk.ac.ir/article_21_30a1ad03e2ade9c821aee24c34837319.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThis study attempts to evaluate whether adjusted Dupont ratio can have better prediction of future profitability (Return on Net Operating Asset) or decomposition of adjusted Dupont ratio to its components (net operating asset turnover and operating profit margin) can have better prediction of future profitability. Finally, it was examined if decomposition of changes in adjusted Dupont ratio - changes in net operating asset turnover and changes in operating profit margin- can enhance prediction of future profitability in one year ahead. Results which were based on panel analysis and for period from 2000 to 2009 showed that decomposition of the adjusted Dupont ratio level to its components is not able to improve future profitability prediction, while decomposition of changes in adjusted Dupont ratio can enhance prediction of profitability in one year ahead. Furthermore, changes in the net operating asset turnover have better ability (in comparison with operating profit margin) to predict future profitability.Mohammad Arabmazar YazdiBehrooz jaberinasabShahid Bahonar University of Kermanarticleadjusted dupont ratioadjusted dupont ratio componentsadjusted dupont ratio components changesAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 2, Iss 6, Pp 93-110 (2011)
institution	DOAJ
collection	DOAJ
language	FA
topic	adjusted dupont ratio adjusted dupont ratio components adjusted dupont ratio components changes Accounting. Bookkeeping HF5601-5689
spellingShingle	adjusted dupont ratio adjusted dupont ratio components adjusted dupont ratio components changes Accounting. Bookkeeping HF5601-5689 Mohammad Arabmazar Yazdi Behrooz jaberinasab Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
description	This study attempts to evaluate whether adjusted Dupont ratio can have better prediction of future profitability (Return on Net Operating Asset) or decomposition of adjusted Dupont ratio to its components (net operating asset turnover and operating profit margin) can have better prediction of future profitability. Finally, it was examined if decomposition of changes in adjusted Dupont ratio - changes in net operating asset turnover and changes in operating profit margin- can enhance prediction of future profitability in one year ahead. Results which were based on panel analysis and for period from 2000 to 2009 showed that decomposition of the adjusted Dupont ratio level to its components is not able to improve future profitability prediction, while decomposition of changes in adjusted Dupont ratio can enhance prediction of profitability in one year ahead. Furthermore, changes in the net operating asset turnover have better ability (in comparison with operating profit margin) to predict future profitability.
format	article
author	Mohammad Arabmazar Yazdi Behrooz jaberinasab
author_facet	Mohammad Arabmazar Yazdi Behrooz jaberinasab
author_sort	Mohammad Arabmazar Yazdi
title	Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
title_short	Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
title_full	Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
title_fullStr	Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
title_full_unstemmed	Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability
title_sort	efficiency of using dupont ratio and its components to forecast the changes in future profitability
publisher	Shahid Bahonar University of Kerman
publishDate	2011
url	https://doaj.org/article/77846c57fafa4fa0ad9f9537b28c9610
work_keys_str_mv	AT mohammadarabmazaryazdi efficiencyofusingdupontratioanditscomponentstoforecastthechangesinfutureprofitability AT behroozjaberinasab efficiencyofusingdupontratioanditscomponentstoforecastthechangesinfutureprofitability
_version_	1718444658445516800

Efficiency of using Dupont Ratio and its Components to Forecast the Changes in Future Profitability

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