DU PONT MODEL UNDER IND AS WITH REFERENCE TO GOODRICKE GROUP LTD

Author (s) : Dr.P.Kalairani

---

Abstract :
Du Pont model is a performance measurement technique to study the operational efficiency, asset use efficiency and financial leverage. In other words, Du Pont analysis divides ROE (Return on Equity) into various components to find out which are responsible for the difference in ROE components. The MCA had issued Ind AS standards which were converged from IFRS (International Financial Reporting standards) for compliance in Indian Companies from 2016. Therefore, few terminologies have changed after adopting Ind AS standards because the format of presentation also has changed. The standard Ind AS 1 deals with presentation of financial statements which gives the structure and content of the financial statements. This paper tries to develop the Du Pont model replacing the terms with newer one. In this research, The Du-pont analysis breaks Return on Total Assets (ROTA) to various components to know the factors responsible for changes in ROTA

Keywords : Du Pont model, Financial leverage

Conference Date : 17/09/2021

Pages : 23

Paper ID : IESMDT22