M Company’s Profitability Analysis And Improvement Strategy Research

With the continuous development of economy and society,various types of new energy are emerging endlessly,the competition in the new energy industry is also increasingly fierce,and profitability has become one of the main indicators to measure the competitiveness of the new energy industry.In the course of decades of development,increasing domestic energy consumption demand,the profitability of new energy enterprises continues to improve,however,there are still many problems with the profitability of new energy enterprises,needs further improvement.This article takes M Company,which is the first company in China to break the technological monopoly of aluminum plastic film abraoad,as the research object.Firstly,it discusses the background and significance of the topic selection,Summarize and sort out a series of theories and methods involved,and reviewed the research status of profitability at home and abroad.Then it introduces the relevant theoretical basis of corporate profitability.Then it analyzes the current situation of the photovoltaic industry and the industry profile of M Company.Subsequently,a brief analysis of various data of M Company in the past five years was conducted,using the Du Pont analysis method to conduct a longitudinal analysis of M Company’s profitability.Then conduct a horizontal analysis with the average value of the photovoltaic industry and the profitability of the five leading enterprises in the photovoltaic industry,in order to objectively evaluate the profitability of M Company.At the same time,it analyzes the development factors that restrict the profitability of M Company from four aspects: rising prices of raw materials,slow asset turnover speed,unreasonable capital structure,intensified market competition.therefore,in order to improve the profitability of the enterprise,it is proposed to reduce production costs,timely adjust production and marketing policies,and improve product capacity;Improve the relevant system of enterprise inventory and strengthen market research;Suggestions on effectively integrating assets and improving asset turnover,inventory turnover,and accounts receivable turnover.