A STUDY ON THE DU PONT ANALYSIS TO MEASURE THE RETURN ON EQUITY AND OPERATIONAL EFFICIENCY OF TALIN MODULAR OFFICE FURNITURE SYSTEMS PVT LTD, BANGALORE

  • Unique Paper ID: 206825
  • Volume: 13
  • Issue: 2
  • PageNo: 2931-2939
  • Abstract:
  • Return on equity is one of the yardsticks investors and lenders rely on to judge how well a company is putting shareholder money to work, but the single percentage figure by itself says little about what is driving that result. This paper applies the Du Pont framework to Talin Modular Office Furniture Systems Pvt Ltd, a Bengaluru-based B2B office furniture manufacturer, in order to separate return on equity into its three underlying drivers net profit margin, total asset turnover, and the equity multiplier over the five financial years ending March 2022 to March 2026. Secondary data drawn from the company's published balance sheets and profit and loss statements were used to compute a full set of profitability, efficiency, liquidity and leverage ratios, which were then examined through regression and ANOVA to test the strength of each Du Pont component's influence on ROE. The findings show that profitability, measured through net profit margin, is by far the strongest and most statistically significant driver of the company's return to shareholders, while asset turnover and the equity multiplier, though relevant, do not individually reach statistical significance. The study concludes with practical suggestions on cost control, receivables management, and asset utilization aimed at strengthening the company's shareholder returns going forward.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{206825,
        author = {Vivek G and Prashantha B and Siddesh L S},
        title = {A STUDY ON THE DU PONT ANALYSIS TO MEASURE THE RETURN ON EQUITY AND OPERATIONAL EFFICIENCY OF TALIN MODULAR OFFICE FURNITURE SYSTEMS PVT LTD, BANGALORE},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {2},
        pages = {2931-2939},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=206825},
        abstract = {Return on equity is one of the yardsticks investors and lenders rely on to judge how well a company is putting shareholder money to work, but the single percentage figure by itself says little about what is driving that result. This paper applies the Du Pont framework to Talin Modular Office Furniture Systems Pvt Ltd, a Bengaluru-based B2B office furniture manufacturer, in order to separate return on equity into its three underlying drivers net profit margin, total asset turnover, and the equity multiplier over the five financial years ending March 2022 to March 2026. Secondary data drawn from the company's published balance sheets and profit and loss statements were used to compute a full set of profitability, efficiency, liquidity and leverage ratios, which were then examined through regression and ANOVA to test the strength of each Du Pont component's influence on ROE. The findings show that profitability, measured through net profit margin, is by far the strongest and most statistically significant driver of the company's return to shareholders, while asset turnover and the equity multiplier, though relevant, do not individually reach statistical significance. The study concludes with practical suggestions on cost control, receivables management, and asset utilization aimed at strengthening the company's shareholder returns going forward.},
        keywords = {Du Pont Analysis, Return on Equity, Net Profit Margin, Asset Turnover, Equity Multiplier, Operational Efficiency, Office Furniture Industry, Financial Ratio Analysis.},
        month = {July},
        }

Cite This Article

G, V., & B, P., & S, S. L. (2026). A STUDY ON THE DU PONT ANALYSIS TO MEASURE THE RETURN ON EQUITY AND OPERATIONAL EFFICIENCY OF TALIN MODULAR OFFICE FURNITURE SYSTEMS PVT LTD, BANGALORE. International Journal of Innovative Research in Technology (IJIRT), 13(2), 2931–2939.

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