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ANALYSIS OF THE NATURAL DISASTER IMPACT ON THE COMPANY-S ECONOMY BY A MODIFIED DUPONT MODEL
Abstract
The aim of the paper is to analyze the impact of natural disasters on the economic activity of companies by a modified DuPont model. The proposed modified DuPont model includes ratios for economic efficiency, profitability and financial autonomy. Usually the DuPont analysis model is used to evaluate the component parts of a company's return on equity (ROE). This allows an investor to determine what financial activities are contributing most to the changes in ROE. DuPont analysis divides ROE into its constituent components to determine which of these factors are most responsible for changes in ROE. Several calculations have been performed with the proposed model. Indicator values are varied to analyze the impact of different natural disasters on the economic activity of companies. The proposed modified DuPont model can be successfully used to plan, analyze and control different aspects of economic activity of the companies, which are affected by natural disasters.
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References11
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