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    Itc-Dupont Analysis

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    juhi prabhu
    This document contains Dupont analysis metrics for ITC Ltd from 2015 to 2019. It shows metrics like EBIT margin, interest coverage, tax burden, asset turnover, financial leverage, and ROE. Over the 5 year period, the EBIT margin, interest coverage and tax burden have remained mostly consistent while asset turnover and financial leverage have decreased, and ROE has also decreased likely due to lower sales growth and asset utilization.

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    Itc-Dupont Analysis

    Uploaded by

    juhi prabhu
    225 views3 pages
    This document contains Dupont analysis metrics for ITC Ltd from 2015 to 2019. It shows metrics like EBIT margin, interest coverage, tax burden, asset turnover, financial leverage, and ROE. Over the 5 year period, the EBIT margin, interest coverage and tax burden have remained mostly consistent while asset turnover and financial leverage have decreased, and ROE has also decreased likely due to lower sales growth and asset utilization.

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    Itc-dupont Analysis

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    This document contains Dupont analysis metrics for ITC Ltd from 2015 to 2019. It shows metrics like EBIT margin, interest coverage, tax burden, asset turnover, financial leverage, and ROE. Over the 5 year period, the EBIT margin, interest coverage and tax burden have remained mostly consistent while asset turnover and financial leverage have decreased, and ROE has also decreased likely due to lower sales growth and asset utilization.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    225 views3 pages

    Itc-Dupont Analysis

    Uploaded by

    juhi prabhu
    This document contains Dupont analysis metrics for ITC Ltd from 2015 to 2019. It shows metrics like EBIT margin, interest coverage, tax burden, asset turnover, financial leverage, and ROE. Over the 5 year period, the EBIT margin, interest coverage and tax burden have remained mostly consistent while asset turnover and financial leverage have decreased, and ROE has also decreased likely due to lower sales growth and asset utilization.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    DUPONT ANALY

    2015 2016 2017 2018 2019


    EBIT margin EBIT/SALE 0.247809 0.24275 0.243305 0.319714 0.414615
    Interest coverage EBIT/EBT 1.005198 1.004027 1.001704 1.005932 1.002682
    Tax burden PAT/PBT 0.677372 0.613048 0.611037 0.611184 0.6112

    Asset turnover SALES/TA 1.155896 1.073884 1.049358 0.741786 0.697857

    Financial Leverage TA/TE 1.449191 1.509338 1.205338 1.224314 1.214024


    ROE 0.28264 0.24218 0.18836 0.17851 0.21527
    DUPONT ANALYSIS OF ITC LTD

    This ratio is constantly increasing due to marginal increase in sales


    This ratio indicates that the company is in a moderate position to meet its interest liabilities
    The rax burden has been constant throughout
    Over the span of 5 years, this ratio has been decreasing which indicates that there hasn’t been
    optimum utilization of assets
    Over the span of 5 years, this ratio has been decreasing which indicates that the company is relying
    more on equity than debt
    The ROE of the company has been decreasing over the last 5 years and this can be attributed to
    marginal increase in sales, which in tunr has led to undertilization of assets

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