The Dupont profitability analysis model: an application and evaluation of an e‐learning tool

Abstract

Successful farm business managers must understand the determinants of profitability and have an overall long‐term or strategic management focus. The objective of this research was to explore the use of an e‐learning tool to help producers understand the impacts of different production, pricing, cost control, and investment decisions on their farm’s financial performance. This objective was accomplished by developing and testing a computer‐based training and application tool to facilitate determination of the financial health of farm businesses using the DuPont profitability analysis model. The results of the two experiments indicate that the computer software was effective for teaching techniques of profitability analysis contained within the DuPont model.