Workshop on how to crack financial data, BEP analysis, DU pont analysis

1. Show your mettle

2. How To Analyze
Finance Case
Study

3. Check Firm is in BEP situation Or not
1
BEP- NO profit No Loss
Situation
2
That means
Contribution=Fixed Cost In
income Statement

4. Income Statement
Sales(Q) Q*P
- Variable cost(V) Q*V
Contribution QP-QV=Q(P-V)
-Fixed Cost(F) -F
Q(P-V)-F
-Interest
EBT
-Tax
EBIT
PAT

5. BEP
Calculation
Q(P-V)-F=0
Q(BEP Qty)=F/P-V
=fixed cost/Contribution
Q(BEP PRICE)=FIXED COST/PV*100
=PV=CPNTRIBUTION/PRICE

6. RATIO ANALYSIS
• Du Pont ANALYSIS

7. DU PONT ANALYSIS
• DuPont analysis is a method of
performance measurement that was
started by the DuPontCorporation in
the 1920s. With this method, assets are
measured at their gross book value
rather than at net book value to
produce a higher return on equity
(ROE). It is also known
as DuPont identity

8. ROE=PAT/Equity
Marketing
Efficiency=
Sales/Asset
Net Profit
Margin=Pat/Sales
Asset Leverage=
Asset/Equity=1+D/E
Effect of operating
leverage=PBIT/Sales
%
Effect of financial
leverage=PBT/PBIT
Effect Of
tax=PAT/PBT

9. RELATION B/W ROE AND ROI
• ROE=PAT/PBT*PBT/PBIT*PBIT/SALES*SALES/TOTAL ASSET*ASSET/EQUITY
• ROI= PAT/PBT*PBT/PBIT*PBIT/SALES*SALES/TOTAL ASSET
• ROE=ROI*ASSET/EQUITY
• =ROE=ROI(1+D/E)

10. THANKS