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@article{173846,
        author = {Hitesh Golani and Isha Saxena and Dr. Tejal Shah},
        title = {Comparative Study Of Automobile Manufacturing & Fashion Retail Industry Using DuPont Analysis},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {10},
        pages = {2000-2005},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=173846},
        abstract = {The global economy is driven by diverse industries, each with unique financial structures and performance dynamics. This study compares the automobile manufacturing and fashion retail industries using DuPont Analysis, which breaks down Return on Equity (ROE) into profit margin, asset turnover, and financial leverage. The automobile industry is highly capital-intensive, requiring substantial investments in R&D, machinery, and infrastructure, whereas the fashion retail industry operates on a low-margin, high-turnover model.
This study employs secondary data from 20 Indian companies (10 from each industry) over a five-year period. The analysis aims to determine whether the leverage (equity multiplier) is higher in the automobile industry and whether the fashion retail industry has a significantly higher asset turnover ratio. The research utilizes hypothesis testing to validate these comparisons.
Findings reveal that while automobile companies exhibit higher leverage, their asset turnover is lower due to the long production cycles and capital requirements. In contrast, fashion retail firms have superior asset turnover ratios due to faster inventory movement. However, profit margins vary within both industries, influencing ROE fluctuations. The study provides insights for investors, industry professionals, and policymakers regarding financial strategies and risk management in these sectors.},
        keywords = {DuPont Analysis, Return on Equity (ROE), Financial Performance, Automobile Industry, Fashion Retail, Asset Turnover, Leverage, Profit Margin, Indian Companies, Hypothesis Testing},
        month = {March},
        }