Profitability Analysis Of Henan Kivi Steel CO.,LTD

The Henan Kivi Steel Co.,Ltd. was established in June2008, is located in industrialagglomeration area of Xiping City of Henan Province.It is the production of electricity, communications,radio tower, steel frame and electrified railway catenary pillar, galvanized, installation as one of theindustry enterprises. It is specialized in producing transmission line tower, communications towers,broadcast towers, light poles and other products. The company covers an area of43,130square meters,construction area of26,000square meters. The registered capital is50million yuan and have526employees, its annual sales income is more than4000million, the province’s key of enterprises ofelectricity, telecommunications, radio tower, steel frame production, galvanized, installation.In recent years, the company do some work in quality management, compared with the advancedenterprises, compared with the requirements of excellence in corporate performance management, eventhough its profitability have improved significantly, there is a big gap. Corporate profitability is a measureof ability to use its owned capital and assets to create cash flow, which is the central concern of all partiesconcerned of the enterprise and beyond, that is, corporate profits are the source of funds from investmentincome to investors, creditors to receive principal and interest, is the concentrated expression of theoperators of management performance and results of operations, but also an important guarantee toimprove welfare facilities of the employee collective.This paper analyzed and summarized the factorsaffecting the profitability, furtherly builded profitability evaluation system to adapt to the newenvironment, which aimed at making the evaluation of corporate performance and evaluation system ofprofitability of the business more rationality and scientific, and to promote the business healthy andcoordinated development,improve their core competitiveness and meet the needs of the enterprisestakeholders to evaluate the enterprise.This paper studies the development and current status of the evaluation of the profitability ofdomestic and foreign enterprises, redefined profitability form the new view, analysis of factors affectingprofitability of the business in the new environment, and corporate profitsfactors Affecting the Ability isdivided into two aspects of financial factors and non-financial factors in the analysis of financial factors, the main profit targets on the profitability of the business, from production and operation, assets and salesrevenue to evaluate the profitability of the enterprise’capacity; in the analysis of non-financial factors thatimpact on corporate profitability, business innovation mechanism incorporated into the evaluation systemof the profitability of the business. From market share, size of enterprise products, enterprise products,customer satisfaction, innovative mechanisms and philosophy, and staff training costs invested to evaluatethe future profitability of the enterprise. Taking the above analysis factors evaluation of the profitabilityindicators further improved and perfected to build the index system of evaluation of the profitability of thebusiness in the new environment.The Henan Kivi is the center of this paper, it uses the combination ofindustry and product characteristics and corporate business development strategy, according to thecompany financial statements of the2008,2009,2010,from profit quality, profit structure, asset efficiencyin terms of corporate profitability analysis, and the factors to analysis profitability of the business, at thesame time to analysis the factor which influent profitability of the business.This paper uses case studies.Ituses corporate financial statements, ratio analysis and factor to analysis profitability of Henan Kivicompany.Finally, the paper put forward the main way to enhance the profitability of the business.