The Use of Dupont Analysis by Market Participants

By Mark T. Soliman. 2008

554 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/63cc1f839ad7056bdfe2ffd7e15ef80eba53add3

How researchers see this paper

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In Accounting

1. Chen Xue
2. Lu Zhang
3. Weili Ge
4. Kewei Hou
5. Catherine Schrand
6. Patricia M. Dechow
7. Christian Leuz
8. Xiaoji Lin

In Finance

1. Chen Xue
2. Lu Zhang
3. Kewei Hou
4. Catherine Schrand
5. Patricia M. Dechow
6. Weili Ge
7. Xiaoji Lin
8. L. Gu

In Strategy and Management

1. Weili Ge
2. Catherine Schrand
3. Kewei Hou
4. Lu Zhang
5. Chen Xue
6. Patricia M. Dechow
7. Christian Leuz
8. Sarah E. McVay

Citations in the corpus

• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “…whether earnings are more sustainable for firms that follow a differentiation strategy associated with higher margins and lower turnover versus a cost leadership strategy associated with lower margins and higher turnover (e.g., Nissim and Penman, 2001; Fairfield and Yohn, 2001; Soliman, 2008).”
• Digesting Anomalies: An Investment Approach (2015, methodology): “Following Soliman (2008), we use DuPont analysis to decompose ROE as RNA+ FLEV× SPREAD, in which ROE is return on equity, RNAis return on net operating assets, FLEV is financial leverage, and SPREAD is the difference between return on net operating assets and borrowing costs.”
• An Augmented q-Factor Model with Expected Growth* (2020, unknown): “4 Novy-Marx (2015) argues that the investment theory cannot explain momentum measured as dRoe.”
• The supraview of return predictive signals (2013, unknown): “Our approximation of the population of RPS identifies more than 330 different signals—four times the number used by McLean and Pontiff (2012), more than six times the number listed by Subrahmanyam (2010), and vastly beyond the classic size, book-to-market, momentum, and beta firm characteristics or ”
• The History of the Cross Section of Stock Returns (2016, unknown): “Soliman (2008) uses net working capital changes to predict stock returns using return data from 1984 to 2002.”
• Going digital: implications for firm value and performance (2019, unknown): “Finally, we examine whether the increase in valuations is validated by increases in future financial performance, as measured by return-on-assets, asset turnover, return-on-net operating assets, net operating asset turnover (Soliman 2008), profit margins, and sales growth.”