A financial approach to the apparel international trading companies´ export potential through a stochastic dupont
Abstract
This paper quantifies the impact of efficiency, profit margin and financial leverage on the export performance of apparel international trading companies, using a stochastic Dupont analysis. Primarily a Monte Carlo simulation is used to model the Dupont system, bringing all figures in the balance sheet and the income statement to the probability distributions of best fit, producing a figure to explain the performance of the equity and investment for these type of businesses. Then, through a sensitivity analysis, using @ Risk, the impact of the explanatory variables (efficiency, margin and leverage) in the behavior of the Dupont projected index is determined. It is that companies in the study have a clear financial weakness, and that the sector shows low efficiency in the use of resources.Downloads
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