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A Study of 4 Automobile Companies in China through DuPont Analysis

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DOI: 10.23977/ieim.2023.061106 | Downloads: 1008 | Views: 2844

Author(s)

Chio Lap Son 1

Affiliation(s)

1 University of Saint Joseph, Macao, China

Corresponding Author

Chio Lap Son

ABSTRACT

The automobile sector is one of the sectors that can influence the Chinese economy. The profitability of the automobile companies mainly depends on the sales amount of the automobiles. On the other hand, the quick development of the electric vehicle industry and the support policies for electric vehicles in China are the other factors that can increase the profitability of these companies. The relevant research questions of this study are: (1) Which automobile company has the best profitability in the peer group during the period of pandemic? (2) The amount of sales of electric vehicles is the key factor in the influence of profitability of automobile companies? The DuPont analysis was used in this study. The relevant finding is that the amount of sales of electric vehicles is positive for the net profit of automobile companies. BYD COMPANY and GAC GROUP have a better performance in net profit because their market share of BEV pure electric vehicles is high in the global market of BEV pure electric vehicles.

KEYWORDS

Net profit, ROE, ROA, ROS, Dupont analysis, and electric vehicles

CITE THIS PAPER

Chio Lap Son, A Study of 4 Automobile Companies in China through DuPont Analysis. Industrial Engineering and Innovation Management (2023) Vol. 6: 33-38. DOI: http://dx.doi.org/10.23977/ieim.2023.061106.

REFERENCES

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