| Title: | Lean manufacturing and return on equity : evidence from Slovenian manufacturing firms using the DuPont model |
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| Authors: | ID Povše, Sandi (Author)
ID Markič, Mirko (Author) |
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| Files: |  https://jibi.aspur.rs/archive/v4/n3/6.php
 RAZ_Povse_Sandi_2026.pdf (721,99 KB)
MD5: D5CF73E5C17217D44DD2E89319A41645
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| Language: | English |
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| Work type: | Article |
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| Typology: | 1.01 - Original Scientific Article |
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| Organization: | FM - Faculty of Management
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| Abstract: | Lean manufacturing is widely recognized as an operational philosophy of process improvement; however, its relationship with financial performance remains relatively underexplored empirically. The purpose of this study is to examine the relationship between lean manufacturing and return on equity (ROE), and to link operational improvements with financial outcomes through the DuPont model. The research comprises a comparative financial analysis of a selected manufacturing company for the period 2019–2023, as well as a quantitative analysis of a sample of 240 Slovenian manufacturing enterprises. Descriptive statistical methods, correlation analysis, and linear regression with a composite lean maturity index were employed. The results indicate that ROE in the analyzed company increased from 4.74% to 11.99%, with growth primarily driven by improvements in net profit margin and process efficiency rather than by increased financial leverage. The empirical analysis demonstrates a statistically significant positive association between the level of lean maturity and ROE (β = 0.255; R² = 0.065; p < 0.001; N = 240). Although the explained variance is moderate, the findings indicate that lean maturity represents a statistically significant and managerially relevant determinant of financial performance within a multifactor business environment. The contribution of the study lies in the integration of the Lean approach with the DuPont model as an analytical bridge between production and financial functions, as well as in the empirical validation of this relationship within the Slovenian industrial context. |
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| Keywords: | return on equit, DuPont analysis, operational efficiency, productivity, lean manufacturing, Toyota Way |
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| Publication version: | Version of Record |
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| Year of publishing: | 2026 |
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| Number of pages: | str. 291-298 |
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| Numbering: | Vol. 4, št. 3 |
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| PID: | 20.500.12556/RUP-23267  |
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| UDC: | 005.9 |
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| ISSN on article: | 3009-3937 |
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| DOI: | 10.61552/JIBI.2026.03.006 |
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| COBISS.SI-ID: | 283838467 |
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| Publication date in RUP: | 07.07.2026 |
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| Views: | 37 |
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| Downloads: | 2 |
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