The Application Research Of DuPont Analysis Method In The Profitability Analysis Of Guangyu Group

As the basis and premise of a company's growth,profit is the power source of the company engaged in production and business activities of the company,is an important way to achieve financial goals.However,in today's market economy environment,market mechanism makes all the interests of the subjects of the market have a certain ambiguity,any company need to take some risks,are likely to be subject to certain economic loss.To compete in this environment,as the main body of market,company want to always forward,greatly reduce the possibility of long-term earnings remain.However,for listing Corporation,have good sales performance,guarantee the stable profit level,show the development trend of strong,is very important,because it is not only beneficial to the company to enhance their credit rating,but also conducive to enhanced shareholder investment confidence,reduce the cost of investment company.The company's operating performance is not optimistic in the case,some listing Corporation through the false financial statements and other means to mislead investors,making investors there is error in the judgment of the actual operation situation of the company's.So,for the interests of the relevant personnel,how to properly evaluate the company's level of profitability,is very important.In order for the company's level of profitability for the correct assessment of financial analysis,have the certain ability is necessary,among them,more applicable to listing Corporation to evaluate the profitability of Du Pont financial analysis system.Financial analysis is not only the historical situation and the present situation analysis of the company,also can rely on the analysis of the historical situation and the present situation,carries on the forecast to the company's future profitability,so as to be able to correctly assess the company's level of profitability.The success and failure of a company,have great relationship with the company's financial level,while the company's financial level can be reflected by the results of the financial analysis.This paper do an assessment of DuPont financial model.This paper first indicates that,in the current market on the various financial analysis method,evaluation of DuPont financial model for a listing Corporation profitability is the most accurate.Then,through the retail business of A shares in Shenzhen Stock Exchange listing Corporation W shares of the company from 2008 to 2013 annual report data,extract the important financial data from the annual report,the company's profit level is studied systematically,including the study of results about financial status and profitability and business research relating to the capital operation ability,asset profitability study,to the listing Corporation's profitability,and through the key financial indicators of various contrast W shares of the company to study.Secondly,this paper through empirical evaluation of W stock company DuPont Model,selection of the rate of return on net assets as the key indicators of decomposition analysis,rate of return on net assets,and contrasted with the same industry in other retail listing Corporation's financial indicators of the DuPont Model,through the selection of commercial retail industry average come out W companystatus in the industry,to really determine the value of the company.Reasons for the low level of profitability of the W shares of the company,put forward reasonable countermeasures and suggestions.Finally,according to the analysis of financial data above,factors found W co current profitability influence,countermeasure and the method to improve the profitability of W shares of the company.In general,the applicability of this model to enhance the DuPont financial evaluation of the level of profitability in the company as the basic goal,the Du Pont model carried out a detailed and systematic study.