The Interpretation Of Dupont Analysis In Sharia Mandiri Bank

Abstract

In the real case, bank asset that is based on Islamic finance is mostly found in the form of ATM machine, information technology, or branch office for fixed asset, rather then in the form of receivable, commercial paper, or investment in another bank for current asset. Direct or indirectly, these assets obviously have influence in determining how banks attain their profits. However, Return on Equity as a profitability determination is not formed by Return on Asset itself. Based on DuPont Analysis, there is another ratio named Equity Multiplier that also gives the same portion in determining Return on Equity. If Return on Asset and Return on Equity as a profitability ratio have different result in determining profitability, then it will be important to find the relation between Total Asset Turnover and Net Profit Margin as a part of Return on Asset plus Equity Multiplier with Return on Equity. Method used in this research is Purposive Sampling approach and the data taken are Total Asset Turnover, Net Profit Margin, and Return on Equity of Sharia Mandiri Bank from January 2010 until October 2011. The result shows that movement in Total Asset Turnover, Net Profit Margin, and Equity Multiplier simultaneously will influence the Return on Equity. The movement also gives significant effect to each factor. Key Words: Sharia Mandiri, Total Asset Turnover, Net Profit Margin, Equity Multiplier, and Return on Equity