Overcoming the «DuPont» model restrictions at the financial-strategic assessment of the Bol'shaya Yalta sanatorium enterprises

Abstract

The article concerns the main disadvantages of the factor model application to assess the efficiency of the shareholders’ equity of the firm «DuPont» for the enterprises of the sanatorium- resort complex of the Republic of Crimea.  The ways to overcome these disadvantages using the variance analysis are also discussed in the research. The study mostly proves a gradual transition from analytical methods for assessing an integrated soundness of an enterprise to the use of the activities systems adapted to the domestic realities and the resumptive strategic models of the factor analysis. The economy transformation and the increase of risk factors in the activity of the Crimean sanatorium-and-resort enterprises have recently updated the importance to apply strategic management methods of the sustainable development of economic entities. It also requires new methods to assess these entities financial sustainability. The purpose of this study is to propose a scientifically grounded version of an integrated strategic model of the factor analysis of financial sustainability, and this model will not contain the disadvantages of the well-known factor systems of the «DuPont» model. The research is based on the variance analysis of stability in time. The importance to limit the variation of strategic indices in time is associated with the need for their long-term stability and comparability when proving the prospective programs for an enterprise development. The novelty of the above method (model) is to prove and to apply a new factor connection among the financial coefficients. In contrast to the model of shareholders’ equity profitability analysis, two areas of company activities (that is typical for a western model) are correlated in the «DuPont» model modified by the author. Moreover, these areas are correlated without the mutual offset of the individual factors influence. The obtained model refers to mixed models of factor analysis and allows comparing the activity of the production sphere with the development of financial risk in an enterprise. A new multi-factor model (DFA) was substantiated in the result of the data analysis on the stability of a wide range of financial indices that form the complex financial stability of the Crimean sanatorium-and-resort enterprises. The obtained multi-factor model makes it possible to study the factors of the second level of subordination (which is important for the monitoring of the strategic program) and to analyze domestic enterprises without the assumptions and limitations that are peculiar to the «DuPont» models. Further the present study will concern the improvement of theoretic and methodology basis of financial and analytical methods to prove the parity role of the financial strategy in the whole system of strategic management of an enterprise and to establish the goals system at more detailed stages of the strategy implementation.

Keywords

«DuPont» model, integrated soundness, a multifactor model, a financial coefficient, owner’s equity, income, a sanatorium-resort complex

For citation

Malyshenko V.A. Overcoming the «DuPont» model restrictions at the financial-strategic assessment of the Bol'shaya Yalta sanatorium enterprises. Perm University Herald. Economy, 2017, vol. 12, no. 3, pp. 482–500. DOI 10.17072/1994-9960-2017-3-482-500

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