The DuPont Financial Analysis Model was developed in the 1960s by F. Donaldson Brown, an electrical engineer who later joined the company’s finance department.
This ratio-based financial analysis system makes it possible to quickly identify whether a company is using all the means at its disposal to achieve its financial goal. The financial objective of any company is to maximize the profit of its owners.
Professor Jacquet explains in detail the ins and outs before applying it in real-life contexts. He uses it brilliantly to compare two different growth models, organic growth and external growth, in the cosmetics industry, comparing the cases of Beiersdorf and Estée Lauder.
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