Analysis Of Earing Capacity Of The Real Estate Listed Companies

After over20years of prosperous development，the Real Estate industry hasbecome prominent inthe economy of China，and now plays an increasingly significantrole in economy construction.However， the2008global financial crisis and thegovernment macro-control policies have broughtprofound changes， which makeChinese real estate market come into a deep period of adjustment. Inorder to get thespace of survival and development in the changing market，China’s real estate businessmust explore new profit model and development thought，strengthen his profitability.Therefore the study of the Earing Capacity and it’s affecting factors of Real Estate ListedCompanies has a certain practical significance and guiding significance for standing thereal estate market heathy and sustainable development.This paper selects10indicators on behalf of profitability， including return on netassets，sales net interest rate，gross margin， net profit，earnings per share，operatingincome，the main business income per share and net assets per share，net cash flow pershare and net profit growth rate. We collect116listed real estate companies in Chinaand take the cross section data from2009to2013as sample data. It is concluded thatthe real estate companies comprehensive scores and rankings using principal componentanalysis. Meanwhile， we establish regression model with the composite scores as eachcompany’s profitability comprehensive index， to understand the relationship betweenprofitability and its influencing factors. We will put forward some suggestions andcountermeasures about the development of listed real estate companies， to realize theimprovement of the real estate listed company profitability and the balanceddevelopment of the industry.