The Improved Dupont Analysis System And Its Application In Automotive Industry

As the separation of ownership, the company's financial statements become the most direct way to know the financial situation of enterprises for company's shareholders, investors and creditors. Financial data can be converted into useful information by analyzing the company's financial statements, as well as for helping users evaluate the company's value. DuPont Analysis System is one method for analyzing financial statements. It can reflect the enterprise's business strategy and financial policies. However, economic environment is much more complex than before. The traditional DuPont Analysis System revealed some "innate" defects. So I would like to do some changes to traditional DuPont Analysis System and hope it could become more competitive in today's competitive society.I describe the traditional DuPont Analysis System first; Second, I discuss the limitations of the traditional DuPont Analysis System; I learn some experience from experts before. Making the improved DuPont Analysis System for sustainable development, I add Sustainable Growth Rate into this system and combine short-term goal with long-term development together. Besides that, I integrate financial strategy matrix to DuPont Analysis System. I analysis the financial date by traditional and improved system respectively on automobile industry to test the improved system is more reasonable and perfect.