Financial Analysis of TransUnion Based on the DuPont Model

Research Article
Open access

Financial Analysis of TransUnion Based on the DuPont Model

Fan Wu 1*
  • 1 Rensselaer Polytechnic Institute    
  • *corresponding author davewuczap@outlook.com
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/38/20231910
AEMPS Vol.38
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-097-4
ISBN (Online): 978-1-83558-098-1

Abstract

The US personal credit reporting market is dominated by Experian, Equifax, and TransUnion. Financial changes in any of these companies can potentially affect the entire market. Utilizing the DuPont analysis and the data collected from TransUnion’s annual reports in EDGAR, this article unveils the four financial indicators encompassing TransUnion’s performance spanning from 2018 to 2022. Notably, TransUnion exhibited a commendable degree of stability and robustness within its financial landscape during 2018-2020. Nonetheless, the acquisition and divestiture undertakings in 2021 inadvertently inflated TransUnion’s profitability, thereby engendering an exaggerated assessment. The reverberations of the subsequent asset restructuring reverberated acutely in 2022, precipitating a substantial erosion in profitability and a marginal attenuation in TransUnion’s ability of asset management. Additionally, it puts forth a set of advanced recommendations for improving the current state of TransUnion. For instance. strategic asset integration and personnel optimization of acquired companies can effectively bolster capital turnover rates and profitability.

Keywords:

financial report, Dupont Method, TransUnion, return on equity

Wu,F. (2023). Financial Analysis of TransUnion Based on the DuPont Model. Advances in Economics, Management and Political Sciences,38,186-191.
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References

[1]. Zhihu. (n.d.). Meiguo de xincheng tixi shi zenmeyang de? [What is the credit system like in the United States?]. https://zhuanlan.zhihu.com/p/390948392

[2]. McGowan, C.B. Financial analysis of Bank Al Bilad. Paper presented at the International Business & Economics Research Journal Conference, March 2011, New York, NY. (2011).

[3]. TransUnion. (2023, February 14). 10-K: Annual report for year ending December 31, 2022. https://www.sec.gov/ix?doc=/Archives/edgar/data/1552033/000155203323000016/ck0001552033-20221231.htm

[4]. TransUnion (2021, February 16). 10-K: Annual report for year ending December 31, 2020. https://www.sec.gov/ix?doc=/Archives/edgar/data/0001552033/000155203321000008/ck0001552033-20201231.htm

[5]. Qi, Tingyan. The Application of DuPont Analysis in Corporate Financial Analysis — A Case Study of Midea Group. Accountant. (18), 2. (2016).

[6]. Zhang, Junwei. Research on the evaluation of corporate operating ability based on financial indicators: A case study of MN company. Enterprise Reform and Management(17),61-63. (2022).

[7]. Equifax (2023, February 23). 10-K: Annual report for year ending December 31, 2022. Retrieved from https://www.sec.gov/ix?doc=/Archives/edgar/data/33185/000003318523000012/efx-20221231.htm

[8]. Equifax (2021, February 25). 10-K: Annual report for year ending December 31, 2020. https://www.sec.gov/ix?doc=/Archives/edgar/data/33185/000003318523000012/efx-20221231.htm

[9]. Experian (2022, June 10). Annual report for year ending March 30, 2022.

[10]. Experian (2020, June 12). Annual report for year ending March 30, 2020.

[11]. Dong, Zhanqi. A Study on Profitability Based on DuPont Analysis Method: A Case of Midea Group. (2020).

[12]. Peng Yao, Li, Laier. Analysis of the Ways to Improve the Return on Net Assets of Enterprises: A Case Study of China Ping An Insurance. Trade Fair Economy(23), 90-92. (2022). doi:10.19995/j.cnki.CN10-1617/F7.2022.23.090.

Cite this article

Wu,F. (2023). Financial Analysis of TransUnion Based on the DuPont Model. Advances in Economics, Management and Political Sciences,38,186-191.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-097-4(Print) / 978-1-83558-098-1(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.38
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Zhihu. (n.d.). Meiguo de xincheng tixi shi zenmeyang de? [What is the credit system like in the United States?]. https://zhuanlan.zhihu.com/p/390948392

[2]. McGowan, C.B. Financial analysis of Bank Al Bilad. Paper presented at the International Business & Economics Research Journal Conference, March 2011, New York, NY. (2011).

[3]. TransUnion. (2023, February 14). 10-K: Annual report for year ending December 31, 2022. https://www.sec.gov/ix?doc=/Archives/edgar/data/1552033/000155203323000016/ck0001552033-20221231.htm

[4]. TransUnion (2021, February 16). 10-K: Annual report for year ending December 31, 2020. https://www.sec.gov/ix?doc=/Archives/edgar/data/0001552033/000155203321000008/ck0001552033-20201231.htm

[5]. Qi, Tingyan. The Application of DuPont Analysis in Corporate Financial Analysis — A Case Study of Midea Group. Accountant. (18), 2. (2016).

[6]. Zhang, Junwei. Research on the evaluation of corporate operating ability based on financial indicators: A case study of MN company. Enterprise Reform and Management(17),61-63. (2022).

[7]. Equifax (2023, February 23). 10-K: Annual report for year ending December 31, 2022. Retrieved from https://www.sec.gov/ix?doc=/Archives/edgar/data/33185/000003318523000012/efx-20221231.htm

[8]. Equifax (2021, February 25). 10-K: Annual report for year ending December 31, 2020. https://www.sec.gov/ix?doc=/Archives/edgar/data/33185/000003318523000012/efx-20221231.htm

[9]. Experian (2022, June 10). Annual report for year ending March 30, 2022.

[10]. Experian (2020, June 12). Annual report for year ending March 30, 2020.

[11]. Dong, Zhanqi. A Study on Profitability Based on DuPont Analysis Method: A Case of Midea Group. (2020).

[12]. Peng Yao, Li, Laier. Analysis of the Ways to Improve the Return on Net Assets of Enterprises: A Case Study of China Ping An Insurance. Trade Fair Economy(23), 90-92. (2022). doi:10.19995/j.cnki.CN10-1617/F7.2022.23.090.

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