In the tourism industry context, this video explains the use of DuPont analysis to investigate firm value drivers and how the latter are related to stock market reactions in times of unforeseen crises such as the COVID-19 pandemic.
The study reveals that both profitability and productivity are important factors in predicting the value of tourism firms such as airlines, restaurants, hotels and casinos. Furthermore, productivity is perceived by investors as a more reliable indicator of performance (i.e., it is less manageable), and played a more important role during the COVID-19 crisis.
Watch this video to discover concrete examples of how companies in the industry can increase their market value.