杜邦分析法外文翻译文献
英文小说读后感杜邦分析法外文翻译文献
(文档含中英文对照即英文原文和中文翻译)
原文:
成长回忆录FIVE WAYS TO IMPROVE RETURN ON EQUITY
The Du Pont Model: A Brief History
The u of financial ratios by financial analysts, lenders, academic rearchers, and small business owners has been widely acknowleged in the literature. (See, for example, Osteryoung & Constand (1992), Devine & Seaton (1995), or Burson (1998) The concepts of Return on Asts (ROA hereafter) and Return on Equity (ROEhereafter) are important for understanding the profitability of a business enterpri. Specifically, a “return on” ratio illustrates the relationship between profits and the investment needed to generate tho pro
fits. However, the concepts are often “too far removed from normal activities” to be easily und erstood and uful 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 in 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 purchad 23 percent of its stock. (This company was General Motors!) Brown recognized a mathematical relationship that existed between two commonly computed ratios, namely net profit margin (obviously a profitability measure) and total ast turnover (an efficiency measure), and ROA. The product of the net profit margin and total ast turnover equals ROA, and this was the original Du Pont model, as illustrated in Equation 1 below.四象限时间管理法
Eq. 1: (net income / sales) x (sales / total asts) = (net income / total asts) 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 sys
tem of planning 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
痛风中医“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 way in which a firm financed its activities, i.e. its u of “leverage” became a third area of attention for financial managers. The new ratio of interest was called the equity multiplier, which is (total asts / equity). The modified Du Pont model is shown in Equations 1 and 2 below.
Eq. 2: ROA x (total asts / equity) = ROE
Eq. 3: (net income / sales) x (sales / total asts) x (total asts / equity) = ROE
The modified Du Pont model became a standard in all financial management textbooks and a staple of introductory and advanced cours alike as students read statements suc
h as: “Ultimately, the most important, or “bottom line” accounting ratio is the ratio of net income to common equity (ROE).” (Brigham and Houston, 2001) The modified model was a powerful tool to illustrate the interconnectedness of a f irm’s income statement and its balance sheet, and to develop straight-forward strategies for improving the firm’s ROE.
杭州西湖美景More recently, Hawawini and Viallet (1999) offered yet another modification to the Du Pont
model. This modification resulted in five different ratios that combine to form ROE. In their modification they acknowlege that thefinancial statements firms prepare for their annualreports (which are of most importance to creditorsand tax collectors) are not always uful tomanagers making operating and financialdecisions. (Brigham and Houston, p. 52) Theyrestructured the traditional balance sheet into a“managerial balance sheet” which is “a moreappropriate tool for asssing the contribution ofoperating decisions to the firm’s financialperformance.” (Hawawini and Viallet, p.
滑熘68)This restructured balance sheet us the conceptof “invested capital” in place of total
asts, andthe concept of “capital employed” in place oftotal liabilities and owner’quity found on thetraditional balance sheet.The primary differenceis in the treatment of the short-term “workingcapital” accounts. The managerial balance sheet us a net figure called “working capital requirement” (determined as: [accounts
receivable + inventories + prepaid expens] – [accounts payable + accrued expens]) as a part of invested capital. The accounts then individually drop out of the managerial balance sheet. A more detailed explanation of the managerial balance sheet is beyond the scope of this paper, but will be partially illustrated in an example. The “really” modified Du Pont model is shown below in Equation 4.
新新闻主义
Eq. 4: (EBIT / sales) x (sales / invested capital) x (EBT / EBIT) x (invested capital / equity) x (EAT / EBT) = ROE
(Where: invested capital = cash + working capital requirement + net fixed asts) This “really” modified model still maintains the importance of the impact of operating decisions (i.e. profitability and efficiency) and financing decisions (leverage) upon ROE, but us a t
otal of five ratios to uncover what drives ROE and give insight to how to improve this important ratio.苹果汁的功效与作用
