Analytics mindset

Implementing the DuPont Method

Background:

A key purpose of financial statements is to provide useful information to decision makers, including investors. $$Investors can use the information contained in financial statements to better understand company performance so they can make better investment decisions. One introductory framework that has been especially useful in understanding company performance is the DuPont Method $($sometimes called DuPont Analysis, DuPont Model or DuPont Framework$).$ To understand the DuPont Method, it helps to use an analyticsmindset. $$For this case, we $(1)$ define an analytics mindset, $(2)$discuss the history of and ratios involved in the DuPont Method and $(3)$ use the DuPont Method to perform data analytics and data visualization techniques. $$