Evaluating the Financial Performance and Going Concern of Economic Units Using the DuPont Model : An Applied Study in the Bank of Baghdad
Dr. Ahmed Taher Kadhim Al-Anbagi
Middle Technical University- Technical College of Management– Baghdad
Ashraf Hashim Faris Alabdoon
Tikrit University, College of Administration and Economics Tikrit-Iraq
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http://doi.org/10.37648/ijps.v20i01.021
Abstract
Performance evaluation is a tool that helps users, both internal and external, achieve planning and control objectives and make appropriate decisions. This can lead to rational investment decisions, as well as the possibility of evaluating the application of the accounting assumption of the continuity of economic units. The research problem is represented by the following question: Is it possible to evaluate the financial performance and continuity of units by applying the DuPont model? The importance of the research lies in assisting internal users (such as managers and others) and external users (such as investors and others) in evaluating the performance of economic units. To achieve the research objectives, the financial statements of the sample unit (Bank of Baghdad) were used, and the DuPont model was applied to arrive at a judgment regarding the evaluation of financial performance and continuity of units. The research reached several conclusions, the most important of which was the possibility of using the model to evaluate performance on the one hand and to evaluate the continuity of economic units on the other.
Keywords:
DuPont model; financial performance evaluation; financial statements; continuity of economic units
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