Analysis of The Interrelation between DuPont ModelIndicators and ‎The Cost of Fixed Assets in TheContext of Real Investment Growth

  • Authors

    https://doi.org/10.14419/0zqt1g15

    Received date: November 17, 2025

    Accepted date: February 8, 2026

    Published date: February 15, 2026

  • Analysis; Correlation Analysis; Dupont Model; Investment; Fixed Assets

  • Abstract

    In this article, the authors set out to test the hypothesis that a high Return on Equity can serve ‎not as an indicator of past performance but also as a factor of growth in real investment.‎

    To this end, a primary sample of 50 enterprises in the Ukrainian electrotechnical industry was ‎generated. The impact of the capital structure and financing policy on investment activity was ‎taken into account using the Debt-to-Equity Ratio and the Debt-to-Assets Ratio as indicators. ‎Fixed Assets growth (residual value) was conditionally accepted as an indicator of real ‎investment as it reflects investments in production capacity. The object of the study was ‎selected enterprises that did not perform asset revaluation.‎

    The authors conclude that the hypothesis of a direct interrelation between the parameters of ‎the DuPont model and the value of Fixed Assets was not confirmed for the studied ‎enterprises. The lack of correlation between Return on Equity (ROE) and Fixed Asset growth ‎suggests that high ROE is not necessarily accompanied by technological development. The ‎increase in this indicator for the sample of enterprises was mainly due to an increase in ‎Financial Leverage rather than to investments in Fixed Assets. ROE, in turn, is not a ‎determining factor of technological development in the electrotechnical industry of Ukraine ‎under conditions of uncertainty. At the same time, the authors concede that there are factors ‎that have not been considered by these researchers. The problem requires additional research ‎and further analysis‎.

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  • How to Cite

    Zamazii, O., Savchenko , O. ., Kosiiuk, O. ., Karvatska, N. ., & Hrabovska, I. . (2026). Analysis of The Interrelation between DuPont ModelIndicators and ‎The Cost of Fixed Assets in TheContext of Real Investment Growth. International Journal of Accounting and Economics Studies, 13(2), 179-184. https://doi.org/10.14419/0zqt1g15