Study About Improvement Of Du Pont Analysis System Based On The Operating Performance Evaluation Of Listed Companies

For listed companies, with high profitability, good performance, strong developmetpotential is crucal, because it is not only beneficial to increase shareholder ’s investmentconfidence, and help enterprises to obtain a good credit rating. Therefore, for stakeholder, toevaluate operating performance of listed company is very important.Du pont analysis method is widely used due to its own advantages.however, this doesnot mean that the Du pont financial analysis method is perfect, when Du pont financialanalysis theory is applied to the comprehensive financial analysis for listed company toevaluate advantages and disadvantages of the operating performance, it also has its limits.So in order to evaluate the operating performance of listed companies accurately andobjectively, improving and perfecting the traditional Du pont analysis system is particularlyimportant.Firstly, this article discusses the traditional Du pont analysis system, including theresearch background, research significance and the theoretical basis. Then we summarizethe improvement research concerning the Du pont analysis system at home and abroad.Secondly, this paper focuses on the improvement of the traditional Du pont analysissystem, and considering the particularity of financial indicators of listed companies.Combining Du pont system’s limitations, this paper puts forward a more suitable theory forthe Du pont financial analysis of listed companies. Improved Du pont analysis system ispremised on business activities, sustainable growth rate as the core, combining the balancesheet, income statement and cash flow statement and non-financial information such asindustry analysis, management strategy into the improvement of comprehensive financialanalysis system, in order to reflect the intrinsic quality of earnings and the financial risk ofthe enterprise more accurately.Finally, this paper carries on the thorough research about improved Du pont analysissystem,analyzing the possibility of using the theory of improved Du pont in China. Thenwe chose Poly real estate as a case, using the traditional Du pont analysis system and the improved Du pont analysis system to analyze operating conditions of Poly real estate, thenconcluded the improved Du pont analysis system can be more comprehensive to reflectcompany’s development ability, paying ability, profit ability, debt paying ability andoperation ability.In short, this paper studies the Du pont financial analysis system theory,in order toenhance the practicability of Du pont financial analysis methods, enlarging the applicationscope of theory of Du pont financial analysis.