Evaluating Corporate Financial Performance Using the DuPont System: A Case Study of PT Ophthalindo Jaya

Abstract

This study aims to analyze the financial performance of PT Ophthalindo Jaya using the DuPont System through the Return on Assets and Return on Equity approaches over the 2015–2024 period. The DuPont framework examines the relationship among three key financial ratios, namely Net Profit Margin (NPM), Total Asset Turnover (TATO), and Equity Multiplier (EM), which are used to evaluate the components underlying the company’s Return on Assets (ROA) and Return on Equity (ROE). This study employs a quantitative descriptive approach using secondary data obtained from the company’s financial statements, including the statement of financial position and income statement. The results show that the three DuPont components fluctuated considerably throughout the observation period, resulting in substantial changes in the company’s profitability indicators. NPM declined from 23% in 2015 to 0% in 2020 and subsequently recovered to 5% in 2024, while TATO decreased from 1.41 to 0.67 over the same period. ROA declined from 33% in 2015 to 0% in 2020 and reached only 3% in 2024. Similarly, ROE decreased from 55% to 0% and recovered to 9% in 2024. Overall, the findings indicate that the company’s financial performance remained unstable, with profitability and asset utilization representing important areas for improvement. The company should therefore strengthen cost efficiency, optimize asset utilization, and maintain a sound capital structure to support sustainable financial performance.