Study On The Profitability Analysis Of Wanke Co.,Ltd.

At the beginning of 21 st century, with the rapid development of national economy, people’s demand for housing standard become increasingly higher under the premise of satisfying basic needs, for instance, the demand for house type, dwelling community environment, etc. Meantime, real estate industry’s prosperity benefits the other correlated industries. Owing to strong demand of market, real estate companies zealously expand supply and their profitability boosted a lot, which gives rise to a profiteering industry of real estate.As we all know, the real estate of China is pillar industries in national economy, and Wanke, as its leading enterprise, the profitability takes an one-up position. Thus, the study of its profitability can be taken as a reference for other industries, and it can benefit for users to make the right investment decisions, as well as equipping great realistic and theoretical significance. Through the case analysis, the research can be enriched the theory in our country. Profitability is a very important indicator for financial statement analysis. Whoever, including investor, creditor, or even enterprise operator, what they most concerned is profitability. This thesis will analyze Wanke’s profitability from financial and non-financial perspectives by appropriate analytical method, find its imperfection that is profitability of Wanke keep on descending.Through analysis the company, the author get the conclusion which is financial and non-financial index all have notable influence on profitability of Wanke. So, it is important for this company to give up three advice :flexible market positioning strategy, the reasonable cost control, and management human resource scientific.This thesis consists of six chapters. The first one introduces research background, thoughts, domestic and overseas literature review, and even the function. The second chapter is concept explanation, describe theoretical foundation of profitability analysis. The third chapter recommends real estate profile, as well as growing trend and horizontal competition in profitability of Wanke. The fourth chapter, financial analysis of profitability, represents application of financial index, like analysis of main operation margin, gross profit margin, net profit margin, the cost profit margin and rate of return on common stockholders’ equity,and use descriptive statistical analysis. The fifth chapter, non-financial index includes the analysis of market positioning, cost control and human resource management towards Wanke’s profitability, and the fifth section analyzes the problems of Wanke. The last part is conclusion of the research and advice.