Research On Du Pont System Based On Intermediary Business Of Commercial Banks And Its Application

Du Pont System is an important tool of comprehensive financial analysis. Taking Return on Equity ratio (ROE) as its core index, Du Pont System organically combines various indexes such as profitability, management, pay ability and anti-risk-ability. Making use of ratio analysis, comparison analysis and factor analysis, it can deeply and broadly evaluate one company's operation performance and analyze the factors which influence it. Traditional Du Pont System begins to show more flaws and disadvantages on the evaluation of different industries especially on banks' profitability analysis. In view of this, it's a necessity to establish a new Du Pont System based on Intermediary Business for the analysis of Commercial Banks.After deeply analyzing the flaws of traditional Du Pont System, this paper indicates the importance to establish a new Du Pont System based on Intermediary Business. Theoretically, it argues that ROE has relationship with various elements and the improved system has the feasibility to be implemented in China. Then, this study analyzes the new system's application using factor analysis and regression analysis method, with the sample financial data in reports of Listed Commercial Banks. The result demonstrates that the new Du Pont System precedes the traditional one and is proved to be a brand-new comprehensive financial evaluation system.