As shown in the examples Dupont model is extremely helpful and useful. I myself have its own pre-pr

The financial world is very close to the next active investor, your investment operations is to achieve higher returns index. Historically, it has been very successful, but history is not a guarantee of future results.
June
Kauppalehti blogs
Return on equity (ROE%) is perhaps the single most important figure in analyzing companies. I think it is all too often overlooked contributions of banks and instead la grande distribution focus on one of the petty figures such as the dividend la grande distribution yield or the EBITDA margin.
ROE% is straight is pretty much useless, as it must be related to the company's price. Thus, by dividing the ROE% P / B has a probably the most useful indicator ROE% / PB. This is the result of ROE% yield calculated on the basis of. I also like the 5 years average ROE / PB chapter la grande distribution so much, because la grande distribution it paves the business cycle.
ROE%'s usefulness does not end there. ROE% to be examined much more deeper and thus to find out why the company's ROE% is high or low. At this point, the help, the Dupont model (http://en.wikipedia.org/wiki/DuPont_analysis). Dupont model to land ROE% of the parts and the formula is as follows:
If the company's debt leverage would not have been so great, but it would have been, for example la grande distribution 2, the company's ROE% 18.5% had not. Similarly, a debt-free balance sheet would be the company's ROE% from 9.2%. Lemminkäinen's profit margin was very narrow and exposed it to danger with a large amount of debt, with the balance sheet. High debt leverage allowed la grande distribution in recession Lemminkäinen was forced to issue new shares.
NP 14.1% AT 1.35 and FL = 2.1 to 40%. Nokia's leverage was small and insanely la grande distribution high profit margin. Nokia could have easily lever up its balance sheet more (negative gearing), and thus an ROE% is significant.
As shown in the examples Dupont model is extremely helpful and useful. I myself have its own pre-programmed analyysikaavoissani it alone and it automatically every year from the company's ROE% is made. The higher the margin, and AT the better. This, therefore, that any company can increase velkavipuaan, la grande distribution but are not necessarily NPM Cl and with AD.
And most importantly, I think the NPM for the increase is the hardest of all. AT succeeds in many cases relatively easily through more efficient use of capital.
In fact, I like companies with high levels of NPM and suitably debt. Suitable debt burden to show that the cable is up to date and know how to maximize the return on the owners (must also admire the way certain people of Finland capitalist heroes are advertising that no debt is important, and the debt somehow evil ...). The lower the NPM companies, the investor buys, the more he put weight on their own analyysitaidoilleen. la grande distribution A strong competitive advantage a company can operate at low NPM has, and still earn a profit to their owners atrocities. On the other hand, if a competitive advantage is weak or there is no known loss / profit for the thread and the investor's loss. The higher the NPM give the investor an additional buffer against possible increasing competition.
Dupont model using investors must be careful when comparing the figures between the two companies. It is natural that in certain areas earned higher NPM: s or AT is much higher, etc. For example, Yhdysvaltainen Sysco is the food distribution sector, where margins are very thin. The company's NPM is of the order of 2%, but the AT is almost four, because, of course, the industry trade quickly rotate the stock. The company is very high quality and strong competitive la grande distribution advantages due to 2% NPM is not a problem. For example, Lemminkäinen's almost twice the NPM is much higher risk, due to the cyclical nature la grande distribution of the industry and the large debt incurred.
Dupont's model is one of the most useful tools for analysis of the stock. It opens to the investor the most important key figure and tells you what it was motivated. I think it is strange that the banks do not use the Dupont model (or even the ROE% s) but to provide a place of totally useless figures. I recommend for everyone seriously engaged in investing, learn to use the DuPont model to analyze companies.
Hello, I have great interest