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Decomposition of Return on Equity (ROE) after Return on Assets (ROA), Return on Sales (ROS), Total Assets Turnover (TAT) and Equity Multiplier (EM) provides an analytical framework appropriate for observing factors that make and influence profitability. An analysis of the literature makes it clear that classic and modified DuPont models are widely used to analyze the profitability of many industries, including construction. Despite critical feedback from some scientists, this method remains a useful tool for identifying factors influencing the effectiveness of an enterprise, industry, or region. Aims to calculate the profitability indicators of the "construction" activity enterprises in 1999-2019, to analyze their dynamics and to identify the reasons for the changes. Methods is a widely used Dupont profitability analysis method that involves decomposing the outputs into components in order to identify the effects of those components on the outcome. The profitability indicator analysis of "construction" activity enterprises in 1999-2019 revealed that the construction industry operated at a loss for a decade in a row (2008-2017), which is reflected primarily in the capital structure. During these years, equity decreased to a critical level; in 2015, uncovered losses exceeded the amount of authorized and reserve capital. Only in 2018 the situation started to level off. Factor analysis of profitability indicators has revealed the in depth factors that affect them, namely: loss of the main activity of construction enterprises for ten consecutive years, which caused a decrease in equity to a critically low level and, accordingly, high values of financial leverage. It can be seen that while in the 2000s, the volume of general sources of financing (the amount of liabilities) was 3.65 times higher than the amount of construction capital, in 2009 5.2 times, it was 15.5 times in 2019. Therefore, the reverse direction of the financial lever should also be considered. In the case of profitable activity, the financial lever will allow to reach high values of return on equity. But in times of crisis or continuation of a downward trend, this can lead to a loss of financial sustainability in the construction sector. Кeywords: DuPont model, Return On Equity (ROE), Return On Assets (ROA), Return on Sales (ROS), construction industry, construction enterprice. JEL Classification: G17, G32, L74 Formulas: 4; fig.: 8; tabl.: 1; bibl.: 29. Introduction. According to the State Statistics Service in Ukraine there are about 30 thousand enterprises of "construction" activity, which is 8.3% of the total number of them. For ten years in a row, these enterprises operated at a loss, and only in 2018 they made a net profit of UAH 4,414.1 million. This situation requires an in-depth analysis of the causes of poor construction efficiency. At present, there is a need for retrospective analysis of Issue 1, 2020 Economics, Finance And Management Review 5 the features of the functioning of construction enterprises, as well as for identifying trends in their development and factors affecting the profitability of construction based on the use of widespread financial instruments, including factor analysis, which makes the study relevant. Literature review. The negative generic indicator of the industry, namely the long-term loss-making of its activity, causes the relevance of factor analysis of a set of profitability indicators, in particular, using deterministic models. They are characterized by the fact that each non-random value of the resultant variable (function) corresponds to each factor (factor) value. The profitability (loss) analysis method became widespread in economically developed countries. It was proposed by Donaldson Brown, who, back in the 1920s, worked at DuPont (Blumenthal, 1998). Due to its advantages, such as simplicity, speed of obtaining the result, the ability to choose the depth of analysis, etc, this method is quite widespread nowadays. It is based on an equation that shows the relationship between return on equity and performance: return on sales, asset turnover and financial dependency ratio. The DuPont method is used in various fields. Profitability analysis with this method was used in banking (Almazari, 2012, McGowan and Stambaugh, 2012, Kirikal, Sorg & Vensel, 2011, Hossain and Hossain, 2008, Zahidur Rahman and Mia Rubel, 2018), railway (Ivanilov, Peretyatko & Bozhiday, 2012), pharmaceutical (Sur & Chakraborty, 2006), Sheela and Karthikeyan, 2012) and steel industry (Maji, Sumit, 2014), in construction (Mărginean, Mihălţan & Tepeş Bobescu,2014, Bielienkova,2005, Babayev & Cech, 2016, Sozanski, 2012, Bielienkova, 2010). At the same time, the authors note different performance, approaches, indicators and structure for different types of economic activities, industries, sectors of the economy (Soliman, 2003, Selling & Stickney,1989). (Soliman, 2004), for instance, proposes to use industry model DuPont, in this case the focus of the researcher will be on factors that affect profitability, not their industry specificities. Some authors criticized Dupont's method (Filatov & Rudykh, 2014, Angell & Brewer, 2003, Wet & Toit, 2006, Filatov & Nechaev, 2014) for proposing alternative factor analysis methods. (Hawawini & Viallet, 1999, Nissim & Penman, 2001, Palepu & Healy, 2008, Soliman, 2008, Brigham & Houston, 2001), proposed various modifications to the method, arguing that the prediction model, based on the decomposition of the resultant metric, can improve its quality depending on a number of different factors. An important result of the research of these scientists was the statement that the use of the Dupont method makes sense only when the factors have different dynamics of change over time, otherwise the use of decomposition does not make sense. Aims. Aims is a comparative analysis of the profitability of construction companies in different years using the Du Pont method. Methods. The author used the DuPont methods of profitability analysis, which involve decomposing the resulting indicators into components in order to identify the effects of these components on the result. This method, which is Issue 1, 2020 Economics, Finance And Management Review 6 widely used to derive an impact of various factors of an individual enterprise on profitability, can be applied to analyze the profitability indicators of individual groups of enterprises or the construction industry as a whole. The initial data of the study are the calculations of the State Statistics Service on indicators of enterprise development of the "construction" activity type in 1999-2019. Data for 2019 was used for the first half of the year. The following indicators were selected for the stydy (State Statistics Service of Ukraine, 2019): indicators of enterprises by constructions (non-negotiable assets, current assets, assets, equity capital, current liabilities and provision, liabilities, undistributed income (pending loss), net profit (loss) of enterprises by their size by type of economic activity, financial results of enterprises, production value). Building a " hierarchy tree " helps to reveal the impact of these indicators on the result – return on equity. Results. A major business goal is to operate at a profit. The main indicator of a business effectiveness is its profitability. There exist a large number of profitability indicators and their opposite – loss indicators in the world. Profitability measurement is the subject of interest to creditors, investors, managers and all other enterprise stakeholders. The most appropriate tool for this measurement is the analysis of profitability ratios, the productivity of which consists in numerous calculations and the interpretation of business ratios in order to draw conclusions on a firm's ability to generate profit. Dynamics of construction profitability (loss) indicators in 1999-2018 are given in Table. 1 and Fig. 1 They are calculated by the authors according to data (State Statistics Service of Ukraine, 2019). Fig. 1 Dynamics of construction profitability (loss) indicators in 1999-2019 * *Sourse: calculated by the authors according to data (State Statistics Service of Ukraine, 2019) -40 -35 -30 -25 -20 -15 -10 -5 0 5 1

FACTOR ANALYSIS OF PROFITABILITY (LOSSES) CONSTRUCTION ENTERPRISES IN 1999-2019