Intensity and Extensity of Firm Development and Dynamic Dupont Analysis
Jiri Mihola,
Jana Kotesovcova and
Petr Wawrosz
European Research Studies Journal, 2016, vol. XIX, issue 4, 53-63
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.
Keywords: financial (ratio) analysis; dynamic intensity and extensity parameter; DuPont analysis and its dynamic (search for similar items in EconPapers)
JEL-codes: D24 G32 L25 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)
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Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xix:y:2016:i:4:p:53-63
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