Dupont system analysis in assessing the financial performance of PT Mayora Indah Tbk

Abstract

The company's financial performance is an important indicator in measuring the
effectiveness of operations and overall business strategies. One of the analysis
methods that is able to provide a comprehensive picture of financial performance is
the DuPont System of Analysis. This method divides Return on Equity (ROE) into
three main components, namely Net Profit Margin, Total Asset Turnover, and Equity
Multiplier. This research aims to analyse the financial performance of PT Mayora
Indah Tbk by using the DuPont approach during the period of 2020 to 2024. The data
used is obtained from the company's annual financial statements published through
the Indonesia Stock Exchange (IDX). The results of the analysis show that Net Profit
Margin decreased in 2020 due to the impact of the pandemic, but began to show a
recovery in the following years. Total Asset Turnover is relatively stable, although it
decreased when economic conditions slowed down. Meanwhile, the Equity Multiplier
shows an increasing trend, indicating a higher dependence on external financing.
The increase in the company's ROE in recent years is mostly driven by an increase in
leverage, not by operational efficiency or asset optimisation. This needs to be a concern
because high debt can increase financial risk in the long run. Therefore, it is important
for companies to maintain a balance between profitability, asset efficiency, and capital structure. DuPont analysis has proven to be an effective tool in assessing financial performance comprehensively, as well as providing important information for decision-making by management and investors