The Role of Financial Managemnet In The Sustainable Transformation of Global Automotive Companies On Dupont Analysis from 2019 to 2024
Abstract
General Background: The global automotive industry underwent substantial transformation from 2019 to 2024, driven by electric vehicle development, technological advances, and changing market conditions that required careful financial management. Specific Background: Return on Equity (ROE) provides an important measure of financial performance and can be decomposed through the five-step DuPont framework. Knowledge Gap: Limited research has examined Tax Burden, Interest Burden, Operating Margin, Total Asset Turnover, and Equity Multiplier together among global automotive companies during the 2019–2024 period. Aims: This study analyzes ROE formation through the five DuPont components and compares financial management across ten global automotive companies. Results: Using a descriptive quantitative approach, secondary data were obtained from consolidated annual financial statements for 2019–2024. The findings show differences in ROE across companies, reflecting variations in operating profitability, asset utilization, tax burden, interest burden, and capital structure. BMW and BYD reached the study’s ROE criterion in several periods, while other companies generally remained below the specified criterion. Novelty: This study applies the five-step DuPont framework to compare ROE formation across ten global automotive companies during a period of major industry transformation. Implications: The findings provide a basis for evaluating financial management through profitability, asset utilization, tax and interest burdens, and capital structure. Key Findings Highlights Profitability, asset utilization, and capital structure generate distinct return patterns. Tax and interest burdens vary across firms and reporting periods. BMW and BYD meet the specified return criterion in selected periods. Keywords : Return on Equity, DuPont Analysis, Financial Management, Automotive Industry, Capital Structure