Du Pont Financial Analysis Method In Animal Health Products Enterprises Applied Research

Animal health products industry as a pillar industry of animal husbandry, the healthy development of animal husbandry and improve people’s living standards have an important significance, is closely related to the animal health care products companies and animal husbandry, and scale of animal husbandry and development by animal epidemic, once the outbreak, animal health care products although sales growth quickly, but because of the downturn in the animal husbandry in payment difficulties, resulting in animal health products enterprises cash flow difficulties, even if the rapid growth of the enterprise reality, earnings will still face cash flow difficulties and lead to the "bankruptcy" embarrassment. With the rapid development of animal health products enterprises, the enterprise managers hope can maintain stable and lasting development, business in order to reduce and disperse the risk and animal health products enterprises present diversified business, investment activities of the rich, earnings structure characteristics, no longer blind pursuit of high growth. DuPont analysis method is used as an analysis tool for the level of comprehensive evaluation of enterprise profitability and return on equity, business performance evaluation of an intuitive, systematic approach, in the application of the traditional Du Pont method analysis, the author found that index the numerator and denominator mismatch, ignore the impact of financial activities on the profitability; without concerns for sustainable development capacity limitations, the Du Pont analysis method can accurately evaluate the effect of company’s business activities and financial activities of the overall profitability and can not reflect the ability of enterprise development. It can satisfy the requirement of animal health products enterprises demand for financial analysis.Firstly, through the analysis of animal health products industry, combined with the analysis of a representative enterprise internal finance, summed up the characteristics of animal health products enterprises, clear the traditional DuPont analysis method is not suitable for investment diversification and earnings structure of complex animal health products enterprises; secondly, combined with the development of animal health products enterprises and the traditional DuPont financial analysis system was improved, the separation of various economic activities and increase the sustainable growth analysis. The improved DuPont analysis method, respectively analysis of business activities and financial activities, increasing the influence to the profit; then, the DuPont financial analysis system of the improved application in animal health care products companies Zhongmu by contrast, before and after the improvement of the state analysis method and effect evaluation, to evaluate the improvement; finally, summary The application process of DuPont analysis and precautions.The results show that the separation of business activities and financial activities, the introduction of the sustainable growth rate of the DuPont analysis method is more suitable for business diversification, earnings structure of complex animal health products enterprises. It improves the evaluation results of the traditional DuPont analysis method, Accurate evaluation of business activities and financial activities of the company’s ability to make a profit contribution to the sustainable growth of the ability to pay attention to the rational allocation of resources in favor of enterprises, to better make financial decisions.