Dupont analysis of the efficiency and investment appeal of Russian oil-extracting companies

Abstract

For oil-extracting companies, which form the basis of the Russian economy, the problem of efficiency and investment appeal growth is very important due to the business specifics – the prevalence of fixed assets in the assets structure, the high dependence on natural conditions of extracting and on market prices. It is necessary to benchmark the efficiency and to concentrate managerial efforts at its leading factors. To reveal factors of efficiency, DuPont analysis was made. The sample consists of companies that were included at “The Energy Intelligence Top 100: Ranking The World’s Oil Companies 2012”. The financial data was collected for the period of 2008–2012. On the base of the regression analysis the impact of factors on the ROE (return on equity) was investigated.