Based On DuPont Analysis System Of YG Company Profitability Analysis

Profitability refers to the ability of corporate profits, companies often use it to measure certain income earned during the level. The traditional profitability analysis generally only use a single financial indicators analyzed, did not form a completed and integrated profitability analysis framework, could not conduct a comprehensive and integrated evaluation for profitability. Du Pont Analysis System is a comprehensive financial analysis, the company’s operating results and financial condition may be combined with a comprehensive analysis of their profitability, especially for manufacturing the type of business profitability analysis the effect is very significant. The core indicators of DuPont Analysis System is the Rate of Return on Common Stockholders’Equity, according to the analytical framework DuPont Analysis System, the Rate of Return on Common Stockholders’ Equity can be decomposed into a sales margin, total asset turnover and equity multiplier, according to the internal contact between the various financial ratios and then further decompose them can identify the impact profitability reasons. YG Company as the native of Anhui fairly representative of the solar photovoltaic industry companies, its momentum is very rapid development in recent years, the solar photovoltaic industry and the Anhui Province are cause for concern. Based on DuPont Analysis System to analyze the profitability of the YG Company, not only can improve business decision-making reference for the company’s management recommendations, but also provide a reference for the development of other businesses in the same industry.This paper is divided into five parts. At the beginning of the paper part is an introduction, mainly elaborates the research background and significance and comments on the theme of this study at home and abroad, then expounds the research ideas and methods of this paper, at last overviews the innovation and character of this article. The second part describes the use of relevant concepts and theoretical basis of Du Pont Analysis System for profitability analysis, improve the theoretical basis for the analysis of post-section of YG Company’s profitability. The third part introduces the basic situation of YG Company at first, then analyzes the YG Company’s profitability stability, durability and the main profitability indicators of the level, through the general analysis of the overall profitability of the YG Company’s situation have a preliminary understanding. The fourth part is the key sections of this paper, DuPont Analysis System is mainly based on in-depth analysis of the profitability of YG Company, in order to find out factors affecting the YG Company’s profitability to combine with the industry average profitability of comparative analysis, and finally outline the results YG Company acquired and the problems. The fifth part mainly elaborates suggestions to improve YG Company’s profitability. The sixth part is conclusion and prospect of this paper.The innovation of this paper is selected YG Company which in the solar photovoltaic industry is fairly representative as the research object, the paper analyzes and evaluates YG Company’s profitability is based on DuPont Analysis System, during the analysis combined with the use of interlocking substitution, trend analysis and other methods, and with the industry average for comparative analysis to find out the performance and problems of YG Company acquired, improved management for the company to further enhance the profitability level to provide a proposal. At home and abroad there is little literature related to the profitability of the solar photovoltaic system using DuPont Analysis for analysis. Therefore, the results of this study will not only provide recommendations for the management of YG Company to improve management decision-making, but also provide a reference for other companies in the development of solar photovoltaic industry.