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Case
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Reference no. UVA-OM-0521
Published by: Darden Business Publishing
Originally published in: 1984
Version: September 1989

Abstract

This note provides a brief history of the origins of return-on- investment measurement at DuPont and its close link with operations management. The DuPont Chart approach to calculating return on assets is described, and the chart is presented in work-sheet form to facilitate application by persons unfamiliar with the financial concepts. Use of ROA and ROE for performance measurement is discussed, and average measures of two samples of top US and Japanese companies are presented.

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Abstract

This note provides a brief history of the origins of return-on- investment measurement at DuPont and its close link with operations management. The DuPont Chart approach to calculating return on assets is described, and the chart is presented in work-sheet form to facilitate application by persons unfamiliar with the financial concepts. Use of ROA and ROE for performance measurement is discussed, and average measures of two samples of top US and Japanese companies are presented.

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