Based On DuPont Model DS Tobacco Companies Profitability Analysis

The traditional enterprise profitability analysis only a single financial index to the profit ability analysis and evaluation, not the relationship between indicators of oVganically, form a complete profitability analysis framework.DuPont Model through the return on equity will be several to evaluate the efficiency of business operations and financial status of the ratio of the inner links organically, form a complete index system, help enterprise managers more clearly see the return of equity determinants, and net sales and the total assets turnover rate, debt ratio the linkage between, for managers to take measures to improve the profitability of the business level specified path.DS tobacco companies is a provincial tobacco companies, in the tobacco business enterprises in the upstream of the position.The tobacco industry is a state monopoly, but in industry interior between each enterprise is still facing reform, reorganization of the pressure.The company to enter the ranks of the leading, and maintain the leading position, succeeded in competition advantage and many aspects need to be further tap potential.This article from the Du Pont model proceed with, empirical analysis, qualitative analysis and quantitative analysis combined, in the establishment of the DuPont analysis model frame, the enterprise operation result and financial standing together on the profitability of enterprises are analyzed, and the profitability of decomposition for the production of business profitability, asset profit ability and financial lever profit ability in three parts, respectively on three kinds of profitability by comparative analysis, ratio analysis, factor analysis and other methods for analysis, to find out the effect of the profitability of the business related factors.On this basis, using Michael? Potter Porter’s five forces analysis, SWOT analysis, combine enterprise oneself of the industry characteristics, the influence of the profitability of the business related factors and enterprise competitive strategy to combine, analysis of correlation degree between each other and influence degree, the company changed into management, further improve the profitability level provides relevant recommendations, thus the post financial analysis extends to advance the strategic planning and advance target responsibility management, for the enterprise application of Du Pont model to strengthen the long-term strategy goal and short-term goal responsibility between the communication and contact, build near combination management target system to provide a train of thought.This article through the use of DuPont Model on DS tobacco companies profitability analysis, verify DuPont Model as a financial analysis tools in the enterprise profit ability analysis the applicability and practicability, shows its broad applicability and scalability.