Ph. D Research Scholar, Funding Agency: UGC (NET-JRF),
The objective of the paper is to demonstrate that in most cases the most profitable companies are not the most attractive for investors-through DuPont Analysis method. In order to do this, we take into account the top 20 most profitable companies in India in 2015. Decomposition of Return on Equity (ROE) after Return on Assets (ROA), Return on Sales (ROS), Total Assets Turnover (TAT) and Equity Multiplier (EM) provides an analytical framework appropriate for observing factors that make and influence financial profitability, represented by the value of ROE.
DuPont Model, Profitability, Return on Equity (ROE), Return on Assets (ROA), Return on Sales (ROS), Total Assets Turnover (TAT), Equity Multiplier (EM)
