Bulletin of
Vitebsk State
Technological
University

Abstract

Being the most popular in contemporary financial analysis, the five-factor DuPont model is designed to assess the extent the return on equity influences the efficiency of operating and financial activities of the organization. The presence of national characteristics in the classification of income and expenses of the organization, and in the content of the forms of accounting financial statements, complicates its unconditional use in the financial analysis of the activities of organizations in the Republic of Belarus. The purpose of this study is to further modify the factor model of return on equity in relation to the information content of the national financial statements of textile enterprises and to identify the most significant factors shaping the level of profitability of their activities. The relevance of the study lies in the fact that the assessment of the factors forming the level of return on equity was carried out not for an individual company, but for a statistical population that unites a number of textile organizations in the Republic of Belarus, taking into account the dynamics of the studied indicators for the period 2020–2023. This made it possible to identify trends and dependencies of financial indicators emerging in the production of textiles. Correlation and regression analysis was chosen as the main method for quantitatively assessing the impact of factors on the return on equity. The results of the study allowed us to draw a conclusion about the directions and significance of the impact of factors such as the tax burden on profit, the effectiveness of investment and financial activities, the effectiveness of other current activities, sales profitability, asset turnover and capitalization ratio on the return on equity.

Factors of the DuPont model in the analysis of profitability of textile enterprises