Financial Analysis Of Citic Special Steel To Improve Dupont Analysis System

Nowadays,under the influence of COVID-19,the economic situation at home and abroad is grim,the global supply and demand are unbalanced,and the steel enterprises are also deeply affected.China’s steel enterprises lack advanced technical personnel and independent innovation ability,leading to a low production rate and relatively high production costs.In addition,international steel prices rise,raw materials costs rise,steel enterprises to increase production too quickly.Financial analysis of ZX Special Steel can help the company develop long-term,master the effective management methods,and improve the value of the enterprise.Therefore,the in-depth analysis is thanks to the implementation of the company ’s financial management activities,but also conducive to the enterprise’ s understanding of their own current situation,to achieve sustainable development.First,we describe the research background,purpose and significance,collect and organize literature,organize and evaluate the research and the improvement of Du Pont system.Secondly,the theoretical basis of improving the Du Pont system and financial analysis are introduced.Thirdly,discuss the business scope of ZX Special Steel,integrate the trend and structural analysis method with the three financial statements of ZX Special Steel,and through the comparison with Fangda Special Steel and Nangang shares,ZX Special Steel can explore the development space.Then,distinguish between enterprise operation and financial activities,introduce cash flow data,combined with the operating cash ratio and other indicators,and analyze the five financial capabilities of ZX special steel.Finally,the analysis found that ZX Special Steel has poor profitability,poor cash management ability,poor profit quality,poor inventory storage and management and fixed assets management,high liability ratio and pressure;slow sustainable growth rate,real growth rate,need to improve development capacity,and dividend distribution.The Company should reasonably raise its income,strengthen cash management,improve the turnover rate of inventory and fixed assets,reasonably allocate the financial structure,and expand the product market.