Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment

DuPont analysis is a classical tool for assessing the determinants of financial performance of firms. It is based on financial ratios comparing revenues with costs (the so-called margin ratio), revenues with assets (turnover ratio), and debt with assets (leverage ratio). DuPont analysis thus focuses...

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Detalles Bibliográficos
Autores: Saus Sala, Elisabet, Farreras Noguer, M. Àngels, Arimany Serrat, Núria, Coenders, Germà
Tipo de recurso: capítulo de libro
Estado:Versión aceptada para publicación
Fecha de publicación:2021
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:10256/26651
Acceso en línea:http://hdl.handle.net/10256/26651
Access Level:acceso abierto
Palabra clave:Anàlisi de conglomerats
Cluster analysis
DuPont, Anàlisi de
DuPont analysis
Anàlisi de ràtios
Ratio analysis
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spelling Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance AssessmentSaus Sala, ElisabetFarreras Noguer, M. ÀngelsArimany Serrat, NúriaCoenders, GermàAnàlisi de conglomeratsCluster analysisDuPont, Anàlisi deDuPont analysisAnàlisi de ràtiosRatio analysisDuPont analysis is a classical tool for assessing the determinants of financial performance of firms. It is based on financial ratios comparing revenues with costs (the so-called margin ratio), revenues with assets (turnover ratio), and debt with assets (leverage ratio). DuPont analysis thus focuses on comparing accounting values in relative terms and lends itself naturally to compositional analysis. In this chapter, we show how to graphically display firms according to margin, turnover and leverage by means of a standard compositional biplot, and how to cluster firms into strategic groups by means of k-means compositional cluster analysis. Practitioners who prefer to stick to the classic definitions of industry or cluster-level financial ratios can compute them with the usual formulae from the centre of the composition, i.e. from the industry or cluster geometric averages rather than the totals or arithmetic averages commonly used. An illustration is presented with farm-tourism firmsThis work was supported by the Spanish Ministry of Science, Innovation and Universities/FEDER (grant RTI2018–095518–B–C21), the Spanish Ministry of Health (grantCIBERCB06/02/1002) and the Catalan Government (grants 2017SGR656, 2017SGR386 and 2017SGR155)SpringerAgencia Estatal de Investigación2021info:eu-repo/semantics/bookPartinfo:eu-repo/semantics/acceptedVersionpeer-reviewedapplication/pdfhttp://hdl.handle.net/10256/26651© Filzmoser, P., Hron, K., Martín-Fernández, J.A., Palarea-Albaladejo, J. (eds). 2021. Advances in Compositional Data Analysis. Springer, Cham. https://doi.org/10.1007/978-3-030-71175-7_10, p. 189-206Llibres / Capítols de LLibre (D-EC)reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)Inglésinfo:eu-repo/semantics/altIdentifier/doi/10.1007/978-3-030-71175-7_10info:eu-repo/semantics/altIdentifier/isbn/978-3-030-71174-0RTI2018-095518-B-C21info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/RTI2018-095518-B-C21Tots els drets reservatsinfo:eu-repo/semantics/openAccessoai:recercat.cat:10256/266512026-05-29T05:05:01Z
dc.title.none.fl_str_mv Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
title Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
spellingShingle Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
Saus Sala, Elisabet
Anàlisi de conglomerats
Cluster analysis
DuPont, Anàlisi de
DuPont analysis
Anàlisi de ràtios
Ratio analysis
title_short Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
title_full Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
title_fullStr Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
title_full_unstemmed Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
title_sort Compositional DuPont Analysis. A Visual Tool for Strategic Financial Performance Assessment
dc.creator.none.fl_str_mv Saus Sala, Elisabet
Farreras Noguer, M. Àngels
Arimany Serrat, Núria
Coenders, Germà
author Saus Sala, Elisabet
author_facet Saus Sala, Elisabet
Farreras Noguer, M. Àngels
Arimany Serrat, Núria
Coenders, Germà
author_role author
author2 Farreras Noguer, M. Àngels
Arimany Serrat, Núria
Coenders, Germà
author2_role author
author
author
dc.contributor.none.fl_str_mv Agencia Estatal de Investigación
dc.subject.none.fl_str_mv Anàlisi de conglomerats
Cluster analysis
DuPont, Anàlisi de
DuPont analysis
Anàlisi de ràtios
Ratio analysis
topic Anàlisi de conglomerats
Cluster analysis
DuPont, Anàlisi de
DuPont analysis
Anàlisi de ràtios
Ratio analysis
description DuPont analysis is a classical tool for assessing the determinants of financial performance of firms. It is based on financial ratios comparing revenues with costs (the so-called margin ratio), revenues with assets (turnover ratio), and debt with assets (leverage ratio). DuPont analysis thus focuses on comparing accounting values in relative terms and lends itself naturally to compositional analysis. In this chapter, we show how to graphically display firms according to margin, turnover and leverage by means of a standard compositional biplot, and how to cluster firms into strategic groups by means of k-means compositional cluster analysis. Practitioners who prefer to stick to the classic definitions of industry or cluster-level financial ratios can compute them with the usual formulae from the centre of the composition, i.e. from the industry or cluster geometric averages rather than the totals or arithmetic averages commonly used. An illustration is presented with farm-tourism firms
publishDate 2021
dc.date.none.fl_str_mv 2021
dc.type.none.fl_str_mv info:eu-repo/semantics/bookPart
info:eu-repo/semantics/acceptedVersion
peer-reviewed
format bookPart
status_str acceptedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10256/26651
url http://hdl.handle.net/10256/26651
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.1007/978-3-030-71175-7_10
info:eu-repo/semantics/altIdentifier/isbn/978-3-030-71174-0
RTI2018-095518-B-C21
info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/RTI2018-095518-B-C21
dc.rights.none.fl_str_mv Tots els drets reservats
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Tots els drets reservats
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv © Filzmoser, P., Hron, K., Martín-Fernández, J.A., Palarea-Albaladejo, J. (eds). 2021. Advances in Compositional Data Analysis. Springer, Cham. https://doi.org/10.1007/978-3-030-71175-7_10, p. 189-206
Llibres / Capítols de LLibre (D-EC)
reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.811543

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