Measuring Financial Sustainability Using the Dupont Model, an Analytical Search for Real Estate Companies Registered in the Amman Stock Exchange for the Period 2008-2020
AbstractThe research aims to measure the financial sustainability of a sample of real estate companies registered on the Amman Stock Exchange for the period 2008-2020. The data required for the study included some financial indicators represented by distributed profits, retained earnings, fixed assets, total assets and liabilities, financial return, and profits before interest and taxes, which were mediated by building Standard models and research hypotheses testing, as well as the discrepancy in achieving sustainability rates acceptable by the research sample companies, which DuPont formula was used to measure financial sustainability. The econometric software Eviews-12 was used to estimate the required regression models, and the statistical software SPSS-27 to calculate correlations and other statistical tests, while Excel was used to implement the accompanying graphs for the analysis. The companies that meet certain conditions have been selected, including that these companies have been listed on the Amman Stock Exchange for a short period to have the ability to expect real estate activity in the long term in future.
In light of our statistical results, we conclude that most business companies are financially sustainable and that they will not be exposed to the risks of financial unsustainability when they invest their resources in capital investments. Thus, we recommend companies increase the levels of capital investments, achieve more profits and returns, create new investment opportunities and improve the company's position, which contributes to enhancing the survival and continuity of companies.
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