The Dupont Analysis System And Its Application In Real Estate Enterprise

As the separation of ownership and concession, the most direct way to know thefinancial situation of enterprises for company’s shareholders, investors and creditors is thecompany’s financial statements. Financial data canbetransformed intouseful informationby analyzing the company’s financial statements, as well as for helping users evaluate thecompany’s financial condition and results of operations. DuPont Analysis Model is one ofthe most effective methods for analyzing financial statements. The most important index ofDuPont Analysis Model is "Net interest rate "and the model is more comprehensive.However, with the development of economy,economic environment is becoming more andmore complex.There are some disadvantages in the traditional DuPont Analysis Model. SoI would like to put forward some corresponding corrective proposals to adapt it to thecurrent competitive society.This paper introduces the relevant content of traditional DuPont analysis model. The"Net interest rate" is decomposed into three different indicators and analyze the impact ofvarious indicators. Second, this paper discusses the limitations of the traditional DuPontAnalysis Model. Including "Net interest rate" cannot measure capacity for sustainabledevelopment, and so on. To solve these problems, I try to propose a new DuPont AnalysisModel. I add Enterprise Management Accounting into this Model and combineshort-term goal with long-term development together. Finally, the related theory isapplied to the case. Traditional DuPont analysis models、improved DuPont analysis modelsand New DuPont analysis models were analyzed financial condition of the real estateEnterprise respectively to test the new analysis model is more real and comprehensive.