A Study On Profitability Of DM Iron Mine

China's economic growth shows the trend as L,there has been a sharp slowdown in infrastructure investment,the Chinese steel industry suffers from a great impact.Iron ore,one of the main raw materials of steel industry,its development is restricted by the steel industry‘s demand;On the other hand,both lower degree of the iron mining resources endowment and the industry concentration in our country,the restriction of high taxes and the impact of foreign iron ore,cause the encountered unprecedented difficulties of the iron ore industry.Compared with the rapid growth of iron ore production,the falling profits,excess capacity,environmental pollution and other issues more prominent with the development of the industry,the operation of the iron ore business in China faces serious situation.Profitability is refers to the ability of enterprise to gain profit,good profitability determines the enterprise competitive position in the industry,it is also the foundation of the enterprise becoming stronger.So,how to improve enterprise's profitability is a challenging problem.Accurate evaluation of enterprise's profitability,prompting companies to adopt scientific measures to improve their profitability,but also has important theoretical significance and practical value.DM as a case in this paper,has a low assets growth rate and poor operating efficiency,low indexes such as sales net interest rate and the net interest rate of the cost and profit,also the operating cash flow is difficult to keep operating activities.The weak growth point of profit,the low effectiveness of growth rate,the disproportionated input and output,all above indicates that the enterprise profit ability has a problem.This article is divided into five parts.The first part is the introduction,mainly shows the research background and research significance,comments the literatures at home and abroad,and introduces the research ideas and methods of this article.The second part introduces the related concept and theory of profitability,provides the theory basis for profitability analysis on DM.The third part is the key section of this article,it introduces the basic situation of DM at first,and then analyzes the current situation and problems of DM's profitability.Under the harvard analysis framework,we analysis the growth and stability of DM's profitability and make an evaluation of the main level of profitability indicators,to find the reasons that lead to problems of DM's profitability.The fourth part attempts to put forward some countermeasures and suggestions in order to solve the profitability problems of DM.The fifth part is the research conclusion and prospect.We hope that it can through this study,we can improve the profitability of the DM effectively.