The Research On Profitability Of JSJJ Company Based On The Du Pont Financial Analysis System

As a legal person,company is engaged in the economic activity and a lawfully established for-profit e nterprise.With the rapid development of market economy,the intensive competition in the industry,t he financial statements reflect the enterprise’s financial position and operating results of a form by its effective use.Besides,it could reflect the enterprise actual situation by using financial methods to dec ompose and research,making enterprise management comprehensive grasp the real situation.Du pont analysis system,using the data in the financial statements,the formation of the intrinsic relati onship between financial ratios,could comprehensively analyse and evaluate the enterprises’ financi al position and profitability.This is a complete financial index analysis system focusing on return on net assets and total assets profit margins.The system can comprehensively and intuitively reflect the c onnection within all the enterprises aspects of financial situation,key reveal enterprise profitability an d its causes and effects,to the enterprise’s financial condition to make sensible judgments and to detec t the crux of the business.This paper first elaborates the research status at home and abroad,du pont analysis system of dupont a nalysis method is introduced the basic principle and influence factors analysis and decomposition.In t he next place,as an example of JSJJ company,considering the actual conditions of enterprise financia l condition to research the defects of firms profitability by using the du pont financial model.In additi on,the du pont analysis system deeply analysis of the company’s financial situation and make reasona ble countermeasures and development strategy,and put in a timely manner on the problems existing i n the management of the company,so that the existing deficiency in the financial management can be clearly reflected.And in view of the case is pointed out the advantages and disadvantages of enterpris e management,put forward the solution and improvement,in order to provide investment decision of the management of the state-owned enterprises and relevant investors.