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FOCUS ON PERFORMANCE
The Du Pont Financial Analysis Model
provides a unique look into an organizations financial structure
and operating efficiency. It is used to analyze financial
structure and performance with a specific focus on Return on
Assets (ROA) and Return on Equity (ROE).
Working with a TPACC financial
expert you can identify prescriptive steps to enhance your
operation’s financial performance. TPACC use sophisticated
spreadsheets to graphically show strong and weak performance
areas. The DuPont model is a way of visualizing the information
that shows entries that ultimately make up before-tax return on
investment including cost of sales, selling and administrative
expenses, inventories, accounts receivable, and cash. At
successive stages, they are added, subtracted, divided, or
multiplied until return on equity is reached. Using ROA (return
on assets) as a primary performance measure, and setting our
unique ROI* targets,
one can determine when a problem is related to operating
efficiency versus asset utilization. The results of this adapted 80+
year old technique are phenomenal when used with Throughput
Accounting.
Discuss your requirements with us.
* ROI = Abbreviation for Return On
Investment
if we could be of assistance.
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