Research On The Profitability Of Ansteel Company Based On Du Pont Analysis System

In recent years,the world macro-economy has been in a state of slow growth,especially after the world economic crisis.China’s economic and social development is also facing the problem of slow growth.In view of this,the global demand for steel also shows a trend of continuous decline,the total production capacity is seriously surplus,and the price of steel is also constantly reduced,the income of iron and steel enterprises is greatly reduced,while the operating cost is constantly increasing,The global steel industry has entered a period of low development.As a large-scale steel industry in China,Ansteel will find problems in its business activities by analyzing its profitability,which will greatly improve its profitability and overall benefits,and ultimately enhance its competitiveness in the market.From this perspective,an in-depth analysis of the current situation of the profitability of Ansteel can not only optimize its financial management activities,but also provide some reference for other steel companies.This paper selects Ansteel as the research object,analyzes the profitability of Ansteel by decomposing the indexes of DuPont analysis system,and then puts forward corresponding countermeasures to improve the profitability of Ansteel.First of all,this article explains the research background,research purpose and research significance,and sorts out and summarizes relevant research literature at home and abroad.In addition,the related concepts and the basic theory of DuPont analysis system are described,and the Profitability based on DuPont analysis system is decomposed,which provides theoretical support for the empirical analysis of the following paper.Thirdly,this paper introduces some basic information of Ansteel,and analyzes its profit index from three aspects.Based on the financial data of Ansteel from 2014 to 2019,this paper analyzes its profitability from four aspects: return on net assets,net interest rate on sales,turnover rate of total assets and equity multiplier,and analyzes the profitability with the industry average level and steel industry average level The horizontal comparison of advanced enterprises in the industry determines the level of the profitability of Ansteel,from which the main factors affecting the profitability of Ansteel are extracted.Finally,in view of the influencing factors found in the analysis process,the improvement suggestions are put forward from various aspects to help Ansteel improve its profitability and achieve high-quality development.