The relevance of the DuPont model in modern financial analysis

The DuPont model, despite more than a century since its inception, remains a relevant financial analysis tool. Going beyond assessing a company's current performance, the DuPont model provides a framework for identifying hidden opportunities for expansion and operational improvements, thereby contributing to a deeper understanding of financial performance. Empirical use of the Dupont model in current academic and consulting projects confirms its effectiveness in predicting the dynamics of return on equity. This paper studies a number of use cases of modified DuPont models in order to show its flexibility, versatility and decomposability for different tasks.