Shadowing Practice: DuPont analysis explained - Learn English Speaking with Video
Ders oluşturuluyor...
1
Return on Equity, ROA Return on Assets, ROS Return on Sales.
2
This video takes you through the financial ratios of the ROE formula, the ROA formula, the ROS formula, asset turnover and leverage, and shows how they fit together.
3
The very basics and the very essence of financial ratio analysis.
4
The beauty of financial ratios is that they link together information from two of the three main financial statements, the income statement or profit and loss statement, and the balance sheet.
5
This gives you a more holistic view of a company's performance than merely looking at one financial statement in isolation.
6
ROE, or Return on Equity, is defined as net income divided by equity.
7
In other words, the net profit that the company has generated during a year, divided by the book value of the shareholder capital invested in the company.
8
ROE is a measure of the rate of return to shareholders.
9
For return on equity, at first sight you would say, the higher this ratio is, the better.
10
The return on equity financial ratio becomes more meaningful when you dive into its drivers.
11
What made the ROE go up or down versus prior year, if you look at the same company?
12
Why is the ROE for two companies in different industries, or even in the same industry, different?
13
This is where financial analysts owe a big thank you to the DuPont Corporation, for coming up with the idea of breaking ROE into three distinct elements.
14
Let me walk you through these elements, ROS, Asset Turnover and Leverage, shortly.
15
But first a trivia question.
16
In which period did the DuPont Corporation start using the DuPont analysis?
17
Was it the 1890s, the 1920s, the 1950s, or 1980s?
18
When you are logged into YouTube and are watching this video from a computer, then please click the voting card on the top right to submit your vote.
19
I will explain you first what the DuPont formula is, and then share the answer to the quiz question towards the end of the video.
20
Here's the three-part version of the DuPont analysis.
21
Mathematically, this split makes little sense, as you are multiplying fraction bars where the denominator in one of the fractions is the numerator in another fraction,
22
hence they will cancel each other out when multiplied.
23
For financial analysis, to split into three pieces makes a lot of sense.
24
The first element, ROS or Return on Sales, is Net Income divided by Sales, which is an indicator of the relative profitability or operating efficiency.
25
How many cents of profit are generated for every dollar of sales?
26
The higher the ROS, the better.
27
The second element is Asset Turnover, calculated as Sales divided by Assets, a measure of asset use efficiency.
28
Can we maximize the amount of sales we generate with the assets that we have?
29
A solid control of working capital is key here to decrease the denominator of assets.
30
What are the terms you negotiate with your customers?
31
Are you getting your customers to pay on time?
32
Is your manufacturing and supply chain operation efficient, so the amount of inventory or stock along the way is minimized?
33
All of those help to minimize the denominator.
34
The first two elements together, ROS multiplied by Asset Turnover, form ROA .
35
This ratio of ROA has many variations.
36
Some companies measure ROIC , ROTC , ROCE or RONOA .
37
These are all variations on the same theme.
38
You look at the returns generated during a period, and compare them to the capital invested in the company to generate those returns.
39
ROA is an indicator of business success, influenced by two factors, ROS or Margin Performance,
40
and Asset Turnover, which you could call speed or velocity.
41
The last element of the DuPont three-part equation is leverage, assets divided by equity.
42
Whether they should be high or low is a much discussed question among business people, finance people, and academics, and I don't think there is a definitive answer.
43
On the one side, if you can borrow money, take on debt, at low interest rates, and put this money to productive use, you could grow the company faster, and generate higher returns.
44
On the other side, if debt is very high compared to the equity in the company, you could increase the risk profile, and decrease your buffer against bankruptcy.
45
We have seen plenty of examples of companies that were too highly leveraged, going under in various financial crises over the years.
46
Alright, that's the most commonly known three-step version of the DuPont formula.
47
Are you ready for some more excitement?
48
You can expand the DuPont formula to five steps if you want even more analytical insight
49
into the drivers of where your ROE increase or decrease is coming from.
50
The two elements on the right stay the same, asset turnover and leverage.
51
However, ROS gets split into three elements.
52
Net income divided by earnings before tax, which is called tax burden, earnings before tax divided by EBIT,
53
called interest burden, and EBIT divided by sales, which is EBIT percentage.
54
In a lot of companies, improving the EBIT percentage and increasing the asset turnover are important targets for the management team, whereas the other elements are for the finance,
55
treasury and tax departments to manage.
56
To close the loop on the DuPont formula, the answer to the trivia question is that this financial ratio analysis method came into use in the 1920s.
57
It is still in ubiquitous use, and it can help you to understand the drivers of performance for your company.
58
So thank you very much to Donaldson Brown of the DuPont Corporation!
59
On the Finance Storyteller YouTube channel, you can find lots of well-researched videos explaining business, finance and accounting topics.
60
Please subscribe to the Finance Storyteller channel, and take the time to like the video and comment below.
61
On average, I post one new video per week.
62
If you subscribe to the channel, you will be the first to see it!
✨ Video Öner
C13
163 cümleler
Financial Analysis Fundamentals | Course Module
Business EnglishUniversity StudentsWorking Adults
C14
203 cümleler
It Only Takes 1 Good Trade...
Business EnglishUniversity StudentsWorking Adults
C14
314 cümleler
The Economics behind Starbucks Like Business
Business EnglishUniversity StudentsWorking Adults
C11
7 cümleler
Diodes Explained - The basics how diodes work working principle pn junction
Business EnglishUniversity StudentsWorking Adults
C133 cümleler
Economic Capital (Easiest Explanation)
Business EnglishUniversity StudentsWorking Adults
C11
99 cümleler
OECD Transfer Pricing Guidelines 2022 - Chapter 1 - The Arm's Length Principle
Business EnglishUniversity StudentsWorking Adults
C134
11 cümleler
The Federal Funds Rate Explained in One Minute: Federal Reserve Interest Rate Superpower or Threat?
Business EnglishUniversity StudentsWorking Adults
B21
114 cümleler
The DaVinci Takeover: Why Millions Are Deleting Adobe
Business EnglishUniversity StudentsWorking Adults
C13
28 cümleler
0925.2 financial statements and ratios
Business EnglishUniversity StudentsWorking Adults
C14
32 cümleler
What is the PMI MORE Strategy?
Business EnglishUniversity StudentsWorking Adults
C13
235 cümleler
The Psychology of Money in 20 minutes
Business EnglishUniversity StudentsWorking Adults
C13
84 cümleler
What is the 8D report? (problem solving tools)
Business EnglishUniversity StudentsWorking Adults
Bu dersin kelimeleri ve konuşma notları
Bu C1 seviyesindeki konuşma dersi “DuPont analysis explained” videosuna dayanıyor. En çok tekrarlanan kelimeler: asset, return, Dupont, financial, element. Bu videoda gölgeleme çalışması için 62 cümle ve 996 kelime var. Konuşma bölümü 6:15 sürüyor. Konuşmacı dakikada yaklaşık 160 kelimeyle, günlük konuşmaya yakın doğal bir hızda konuşuyor. Kelimelerin yalnızca %78’i İngilizcede en sık kullanılan 3.000 kelime arasında, bu yüzden kelime dağarcığı zorlayıcı. 62 cümlenin 10 tanesi soru; soru tonlaması ve kısa cevaplar için iyi bir alıştırma.
Bu videodaki önemli kelimeler
Videodaki en ileri düzey 15 kelime, telaffuzu ve anlamıyla:
| Kelime | Telaffuz | Anlam |
|---|---|---|
| leverage isim | /ˈlɛv.(ə.)ɹɪd͡ʒ/ | kaldıraç kuvveti |
| denominator isim | /dɪˈnɒmɪneɪtə(ɹ)/ | payda |
| multiply fiil | /ˈmʌltɪplaɪ/ | çarpmak |
| fraction isim | /ˈfɹæk.ʃən/ | bölüm, fraksiyon |
| trivia isim | /ˈtɹɪvi.ə/ | ıvır zıvır |
| shareholder isim | /ˈʃɛəˌhəʊl.də(ɹ)/ | aksiyoner, hissedar |
| minimize fiil | /ˈmɪn.ɪˌmaɪz/ | azaltmak, cüceleştirmek |
| subscribe fiil | /səbˈskɹaɪb/ | abone olmak |
| variation isim | /ˌvɛəɹiˈeɪʃn̩/ | varyasyon, çeşitleme |
| holistic sıfat | /hoʊˈlɪs.tɪk/ | bütünsel, bütünselci |
| mathematically zarf | matematiksel olarak | |
| numerator isim | /ˈnuː.məɹˌeɪ̯.təɹ/ | pay |
| profitability isim | /ˌpɹɑ.fɪ.təˈbɪl.ɪ.ti/ | karlılık |
| ubiquitous sıfat | /juːˈbɪkwɪtəs/ | aynı zamanda her yerde bulunan, hâzır ve nâzır |
| quiz isim | /kwɪz/ | bilgi yarışması |
Tekrar etmeye değer cümleler
Videodan, günlük konuşmada yeniden kullanabileceğiniz kısa ve tam cümleler:
- What are the terms you negotiate with your customers?
- Are you getting your customers to pay on time?
- Are you ready for some more excitement?
Bu videodaki dil bilgisi
Konuşmacının en çok kullandığı yapılar, videodaki sözcüklerin aynısıyla:
| Yapı | Videoda |
|---|---|
| Edilgen yapı be + fiilin üçüncü hâli — kimin yaptığı değil, ne olduğu önemli | is defined · are logged · are generated |
| İlgi cümlecikleri who / which + cümle — bir kişi ya da şey hakkında ek bilgi | Sales, which is · tax, which is |
| Present perfect have/has + fiilin üçüncü hâli — geçmişte olan ama şimdi de önemli olan bir eylem | has generated · have seen |
Dikkat edilecek telaffuzlar
- “sh” ve “zh” sesleri: fraction /ˈfɹæk.ʃən/, shareholder /ˈʃɛəˌhəʊl.də(ɹ)/, variation /ˌvɛəɹiˈeɪʃn̩/, negotiate /nəˈɡəʊ.ʃi.eɪt/, isolation /ˌaɪsəˈleɪʃən/
- Uzun kelimeler — vurguyu doğru yere koyun: denominator /dɪˈnɒmɪneɪtə(ɹ)/, indicator /ˈɪn.dɪˌkeɪ.tə(ɹ)/, numerator /ˈnuː.məɹˌeɪ̯.təɹ/, profitability /ˌpɹɑ.fɪ.təˈbɪl.ɪ.ti/, ubiquitous /juːˈbɪkwɪtəs/
Türkçe konuşanların zorlandığı sesler:
- /w/ — dudaklar yuvarlak, /v/ değil: ubiquitous /juːˈbɪkwɪtəs/, quiz /kwɪz/, equation /ɪˈkweɪ.ʒən/
- Kelime başındaki ünsüz kümesi — araya ünlü eklemeyin: fraction /ˈfɹæk.ʃən/, trivia /ˈtɹɪvi.ə/, profitability /ˌpɹɑ.fɪ.təˈbɪl.ɪ.ti/, quiz /kwɪz/
- /æ/ — “e”den daha açık: fraction /ˈfɹæk.ʃən/, maximize /ˈmæksəmaɪz/, analytical /ˌæn.əˈlɪt.ɪ.kəl/, calculate /ˈkælkjʊleɪt/, analyst /ˈænəlɪst/
Bu videoyla nasıl çalışılır
- Videonun tamamını konuşmadan bir kez dinleyin ve bilmediğiniz kelimeleri not edin.
- 0,75× hızla başlayın, cümle cümle tekrar edin ve kolaylaşınca normal hıza dönün.
- Kendinizi kaydedin ve orijinaliyle karşılaştırın; leverage, denominator, multiply gibi kelimelere özellikle dikkat edin.
Gölgeleme Tekniği Nedir?
Gölgeleme, başlangıçta profesyonel tercüman eğitimi için geliştirilen ve çok dilli Dr. Alexander Arguelles tarafından popüler hale getirilen, bilim destekli bir dil öğrenme tekniğidir. Yöntem basit ama güçlüdür: ana dili İngilizce olan bir sesi dinler ve hemen yüksek sesle tekrar edersiniz — konuşmacıyı 1-2 saniye gecikmeyle takip eden bir gölge gibi. Pasif dinleme veya dilbilgisi alıştırmalarının aksine, gölgeleme beyninizi ve ağız kaslarınızı gerçek konuşma kalıplarını eşzamanlı olarak işlemeye ve yeniden üretmeye zorlar. Araştırmalar, telaffuz doğruluğu, tonlama, ritim, bağlı konuşma, dinleme anlama ve konuşma akıcılığını önemli ölçüde geliştirdiğini göstermektedir — bu da onu IELTS Konuşma hazırlığı ve gerçek dünya İngilizce iletişimi için en etkili yöntemlerden biri yapar.