Individual Ability In Financial Literacy
Main Article Content
Abstract
The aim of the research is to find out how to manage financial literacy using the Du Pont system method. The method used in this research is qualitative and quantitative research methods using the du pont method In measuring financial literacy Regarding ROA, ROE, and interest margins (and non-interest fees), all of them in financial operations for corporate success” (Sundarajan : 2022).
Research result DuPont Model which is based on analysis of Return on Equity (ROE) & Return on Investment (ROI). The return on equity disaggregates performance into three components: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. Return on Investment consists of Assets Turnover and Profit Margin. The return on investment consists of Assets Turnover (Operating Income X Total Assets) and Profit Margin (EBIT X Operating Income). In conclusion, ROE & ROI is the most comprehensive measure of profitability of a firm. It considers the operating and investing decisions made as well as the financing and tax- related decisions
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Amagir 2018. Financial literacy and portfolio dynamics. The Journal of Finance
Bucher-Koenen, Tabea, and Annamaria Lusardi. 2008. Financial literacy and retirement planning in germany. Journal of Pension Economics & Finance
Burke, Mary A., and Michael Manz. 2021. Economic literacy and inflation expectations: evidence from a laboratoryexperiment. Journal of Money, Credit and Banking
C´ umurovic´, Aida, and Walter Hyll. 2019. Financial literacy and self-employment. Journal of Consumer Affairs 5
Fernandes, Daniel, John G. Lynch, Jr., and Richard G. Netemeyer. 2014. Financial literacy, financial education, and downstream financial behaviors. Management Science 60: 1861– 83.
Frederick, Shane. 2005. Cognitive reflection and decision making. Journal of Economic Perspectives 19: 25–42.
Fünfgeld, Brigitte, and Mei Wang. 2009. Attitudes and behaviour in everyday finance: Evidence from switzerland. International Journal of Bank Marketing
Gathergood, John, and Jörg Weber. 2017. Financial literacy, present bias and alternative mortgage products. Journal of Banking & Finance
Hung, Angela, Andrew M. Parker, and Joanne Yoong. Defining and Measuring Financial Literacy. RAND Corporation Working Paper WR-708; Santa Monica, CA, USA: RAND Corporation.
Huston, Sandarajan J. 2022. Measuring financial literacy. Journal of Consumer Affairs 44: 296–316.
INFE. 2011. Measuring financial literacy: Questionnaire and guidance notes for conducting an internationally comparable survey of financial literacy. In Periodical Measuring Financial Literacy: Questionnaire and Guidance Notes for conducting an Internationally Comparable Survey of Financial Literacy. Paris: OECD.
Lusardi, A., and O.S. Michell. (2008) “Financial literacy and retirement preparedness: Evidence and implications for financial education.” Business Economics: The Journal of the National Association of Business Economists
Lusardi, Annamaria, and Olivia S. Mitchell. 2011. Financial literacy around the world: an overview. Journal of Pension Economics & Finance
Lusardi, Annamaria, and Olivia S. Mitchell. 2014. The economic importance of financial literacy: Theory and evidence. Journal of Economic
OECD 2017.PISA 2015 Result: Students Finansial Literacy PISA Publishing Paris
Remund, David L. 2010. Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs
R. Thorpe, J. Holloway, ìPerformance management ñmultidisciplinary perspectivesî, Plagrave MacMillan, New York, 2008,
Van Ooijen, Raun, and Maarten C. J. van Rooij. 2016. Mortgage risks, debt literacy and financial advice. Journal of Banking & Finance