Liquidity and profitability in modification of du Pont’s model. Verification test
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profitability ratio, liquidity ratio, model Du Ponta, modified model Du Ponta
Abstract
The paper aims to verify the suitability of the Du Ponta model in its modified version to calculate the liquidity ratios. The research sample was build based on the joint stock companies from agri-sector. The analysis were conducted for the period 2001-2006. The paper argues that the modified Du Ponta model does not allow to get the liquidity ratios on the same level that those calculated in standard way. However, the results do not disqualify the verified Du Ponta model. It can be used, but the results should be carefully interpreted and verified by other methods.
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Franc-Dąbrowska, J., & Bereżnicka, J. (2008). Liquidity and profitability in modification of du Pont’s model. Verification test. Annals of Agricultural Economics and Rural Development, 95(1), 183–191. https://doi.org/10.22630/RNR.2008.95.1.21
References
Bednarski L. 2007: Analiza finansowa w przedsiębiorstwie. PWE, Warszawa.
Kowalczyk J., Kusak A. 2006: Decyzje finansowe firmy. Metody analizy: rentowność, płynność, ryzyko, wartość. Wydawnictwo C.H. Beck, Warszawa.
Rutkowski A. 2007: Zarządzanie finansami. PWE, Warszawa.
Sierpińska M., Jachna T. 2004: Ocena przedsiębiorstwa według standardów światowych. PWN, Warszawa.
Waśniewski T. 1993: Analiza finansowa przedsiębiorstwa. Fundacja Rozwoju Rachunkowości w Polsce, Warszawa.
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