關(guān)于杜邦分析法的外文翻譯--真實修改的杜邦分析五種方式改善股東權(quán)益回報率

1、1770 單詞 單詞,9450 英文字符， 英文字符，3110 漢字 漢字出處： 出處：Liesz T. Really modified Du Pont analysis: Five ways to improve return on equity[C]//Proceedings of the SBIDA Conference. 2002.外文資料 外文資料Really modified Du Pont analysis: Five w

2、ays to improve return on equityT LieszThe Du Pont Model: A Brief History The use of financial ratios by financial analysts, lenders, academic researchers, and small business owners has been widely acknowleged in the lite

3、rature. (See, for example, Osteryoung & Constand (1992), Devine & Seaton (1995), or Burson (1998) The concepts of Return on Assets (ROA hereafter) and Return on Equity (ROEhereafter) are important for underst

4、anding the profitability of a business enterprise. Specifically, a “return on” ratio illustrates the relationship between profits and the investment needed to generate those profits. However, these concepts are often

5、“too far removed from normal activities” to be easily understood and useful to many managers or small business owners. (Slater and Olson, 1996)In 1918, four years after he was hired by the Du Pont Corporation to work i

6、n its treasury department, electrical engineer F. Donaldson Brown was given the task of untangling the finances of a company of which Du Pont had just purchased 23 percent of its stock. (This company was General Motors

7、!) Brown recognized a mathematical relationship that existed between two commonly computed ratios, namely net profit margin (obviously a profitability measure) and total asset turnover (an efficiency measure), and ROA

8、. The product of the net profit margin and total asset turnover equals ROA, and this was the original Du Pont model, as illustrated in Equation 1 below. Eq. 1: (net income / sales) x (sales / total assets) = (net inco

9、me / total assets) i.e. ROA At this point in time maximizing ROA was a common corporate goal and the realization that ROA was impacted by both profitability and efficiency led to the development of a system of plannin

10、g and control for all operating decisions within a firm. This became the dominant form of financial analysis until the 1970s. (Blumenthal, 1998)In the 1970s the generally accepted goal of financial management became

11、 “maximizing the wealth of the firm’s owners” (Gitman, 1998) and focus shifted from ROA to ROE. This led to the first major modification of the original Du Pontmodel. In addition to profitability and efficiency, the w

12、ay in which a firm financed its activities, i.e. its use of “l(fā)everage” became a third area of attention for financial managers. The new ratio of interest was called the equity multiplier, which is (total assets / equi

13、ty). The modified Du Pont model is shown in Equations 1 and 2 below. Eq. 2: ROA x (total assets / equity) = ROE fourth ratios of the “really” modified model. These are: 3. financial cost ratio: (Earnings Before Taxe

14、s or EBT / EBIT) 4. financial structure ratio: (invested capital / equity)The final determinant of a firm’s ROE is the incidence of business taxation. The higher the tax rate applied to a firm’s EBT, the lower its ROE

15、. This is captured in the fifth ratio of the “really” modified model. 5. tax effect ratio: (Earnings After Taxes or EAT / EBT) The relationship that ties these five ratios together is that ROE is equal to their combin

16、ed product. (See Equation 4.) Example of Applying the “Really” Modified Du Pont Model To illustrate how the model works, consider the income statement and balance sheet for the fictitious small firm of Herrera & Co

17、mpany, LLC. Income Statement Net Sales …………………………………………………….. $766,990 Cost of Goods Sold ………………………………………….. (560,000) Selling, General, & Administrative Expenses ………………. (143,342) Depreciation Expense ……………………………

18、………….. (24,000) Earnings Before Interest & Taxes …………………………… $ 39,648 Interest Expense ……………………………………………... (12,447) Earnings Before Taxes ………………………………………. $ 27,201 Taxes ………………………………………………………… (8,000

19、) Earnings After Taxes (net profit) ……………………………. $ 19,201 Balance Sheet Cash ……………………….$ 40,000 Notes Payable ………………… $ 58,000 Pre-paid Expenses ………... 12,000 Accounts Payable …………….. 205,000 Accounts Receiva

20、ble ……… 185,000 Accrued Expenses ……………. 46,000 Inventory ………………….. 200,000 Current Liabilities ……………. $309,000 Current Assets ……………. $437,000 Long-Term DebtLand/Buildings …………… 160,000 Mortgage …………………….

21、 104,300 Equipment ………………… 89,000 8-Year Note ………………… 63,000 Less: Acc. Depreciation …... (24,000) Owner’s Equity ……………….. 185,700 Net Fixed Assets ………….. $225,000 Total Liabilities & Equi