Predicting operational profitability using Dupont analysis: insurance companies listed in the Tehran stock market.

Document Type : Original Article

Authors

1 Associate Professor, Department of Accounting, Management and Accounting faculty, Islamic Azad University Tonekabon Branch, Tonekabon, Iran

2 Assistant Professor of Finance Department of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

Abstract

Predicting operational profitability using Dupont analysis: insurance companies listed to the Tehran stock market.

One of the important topics related to the stock exchange organization is predicting the future profitability of listed companies. Forecasting profitability is a very important issue that has focused the minds of financial analysts. Therefore, it is thought that the Dupont ratio, which includes the activity ratio and the profitability ratio, has a lot to do with predicting the future profitability of companies. Therefore, the purpose of this research is to predict operational profitability using Dupont analysis in insurance companies admitted to the Tehran stock market using regression models. The number of companies in the insurance industry in this research is fourteen companies for the period of 1394 -1399. The results of this research show that the future profitability of an insurance company is affected by changes in profit margins and performance management.

Keywords: operational profitability, Dupont analysis, insurance

Keywords

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References

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Budget and Finance Strategic Research
Volume 4, Issue 1 - Serial Number 13
Spring Quarterly
March 2023
Pages 111-134

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History

  • Receive Date: 22 January 2023
  • Revise Date: 14 March 2023
  • Accept Date: 14 March 2023

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