Study On The Reconstruction And Application Of Du Pont Financial Analysis System

With the continuous deepening of the reform of the market economy,enterprises are facing greater pressure.Enterprise managers have to strengthen enterprise management,increase the competitiveness of enterprises.In order to understand the operation of enterprises,the need for a way to accurately reflect the business situation.The comprehensive financial analysis method arises at the historic moment,among which the influence is the most profound.Du Pont analysis system with the return on equity as the core indicators,and decomposed into sales net interest rate,total asset turnover and equity multiplier three financial indicators.Such decomposition can reflect the profitability of enterprises,operating capacity and solvency.Du Pont analysis system is very comprehensive.However,with the development of enterprises,the economic activities of enterprises become more and more complex,the traditional Du Pont analysis system gradually reveals its shortcomings.The content of this paper is the application of Du Pont analysis system in GH,which is in the mature stage.The practical problems encountered in the traditional Du Pont analysis system for GH company investment and profit structure diversification under the background,through the analysis and integration of corporate financial information,the traditional Du Pont analysis system has been improved and the system framework.This will be an important indicator of earnings per share of listed companies as the core index of Du Pont analysis method,the traditional Du Pont analysis system the core index of return on equity and net assets per share will be lower as indicators of earnings per share and return on equity,re decomposition,to distinguish between business investment and financial investment,in order to evaluate the impact on the overall profitability the company,the correct analysis of GH company profit.Secondly,the method of analysis of the traditional Du Pont system and the adjusted application in GH company were analyzed,in order to show the accuracy,Du Pont analysis in the listed company in the application of improved environment variable can improve the evaluation results,is indeed more accurately and improve the evaluation effect;can adjust the traditional deviation Du Pont analysis system inrevealing the profitability and profit orientation reasons.Finally,the paper summarizes the application process and the matters needing attention of Du Pont analysis system.