DU PONT SYSTEM ANALYSIS IN ASSESSING COMPANY FINANCIAL PERFORMANCE FOR THE PERIOD 2019–2023
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Digital Ethics, Legal Compliance, Trust, Digital Governance, Ethical AuditAbstract
This study aims to analyze the company's financial performance using the Du Pont System approach for the 2019–2023 period. This method is used because it can provide a comprehensive overview of the relationship between profitability, asset utilization efficiency, and funding structure on Return on Equity (ROE). This study uses a quantitative descriptive approach with secondary data in the form of the company's annual financial report obtained from the Indonesia Stock Exchange (IDX). The analyzed variables These include Net Profit Margin (NPM), Total Asset Turnover (TATO), Equity Multiplier (EM), and ROE. The results show that the company's financial performance fluctuated throughout the study period. The increase in NPM after 2020 indicates improvements in operational efficiency and cost control, while the relatively stable TATO indicates the company's ability to optimize assets to generate sales. A moderate EM value indicates a balanced funding structure between equity and borrowed funds, thus managing financial risk. Overall, the increase in ROE in 2021–2023 was due to the synergy between operational efficiency, effective asset management, and a sound leverage policy. These results reinforce the findings of previous studies (Zahra & Febrianty, 2022; Ferawati, 2024), which confirmed that the Du Pont System is an effective analytical tool for assessing comprehensive financial performance. Therefore, this approach can be used as a basis for strategic evaluation by management and investors to improve profitability and manage the company's finances sustainably
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