The Effect of Intellectual Capital, Profitability and Leverage on Company Performance (Study on Halal Industry companies in Indonesia Malaysia

Abstract

General Background: The global automotive industry underwent substantial transformation from 2019 to 2024 through the development of electric vehicles, technological advances, and changing market conditions that required careful financial management. Specific Background: Return on Equity (ROE) is used to assess financial performance and can be examined through the five-step DuPont framework consisting of Tax Burden, Interest Burden, Operating Margin, Total Asset Turnover, and Equity Multiplier. Knowledge Gap: Research examining these five components together in global automotive companies during 2019–2024 remains limited. 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 and secondary data from consolidated annual financial statements, the study finds differences in ROE across companies. BMW achieved ROE above 20% in several periods, while BYD reached the criterion in 2023 and 2024. The differences were associated with variations in operating profitability, asset utilization, tax burden, interest burden, and financing structure. Novelty: This study applies the five-step DuPont framework to examine ROE formation across ten global automotive companies over the 2019–2024 period. Implications: The findings provide a basis for evaluating financial management through profitability, asset utilization, tax and interest burdens, and financing structure. Key Findings Highlights Profitability, asset utilization, and capital structure show different patterns. Tax and interest burdens differ by company and reporting period. BMW and BYD meet the ≥20% criterion in selected periods. Keywords : Financial Management, DuPont Analysis, Return On Equity, Automotive Industry, Financial Performance