Research On The Financial Strategy Of Huangshan Tourism Based By Dupont Analysis

This paper uses DuPont analysis,combined cycle replacement method and comparative analysis method to analyze the financial reports of Limited by Huangshan Tourism Development Co.,Ltd.during the four years from 2013 to 2016.The analysis found that the use of traditional financial analysis of the financial data were analyzed that Huangshan tourism's profitability,solvency and operational capacity showed a good state,and the indexes of four years steadily,the healthy development of enterprises in the healthy state.However,after using the DuPont analysis method to decompose the income indicators,it is found that there are many hidden problems behind the prosperity of the tourism financial indicators in Huangshan tourism.These problems can be summarized into three points: the first is the financial leverage of enterprises have been suppressed;with the decline in the amount of debt the debt ratio,financial leverage has ceased to exist,although the immediate profit index did not change much,but the long-term profitability will inevitably be affected by.Secondly,the cost is high;these years although the profit ratio rise steadily,but the cost or expense amount did not change much,and even individual ratio rose significantly,indicating that the cost management of enterprises did not play a role in cost control of force.Finally,through the analysis,the total assets of the enterprise interest rate rises year by year,by the end of 2016 has reached 82%;tourism services,catering,real estate development are Huangshan tourism's main business,no matter which industry is the rapid circulation of funds industry,total assets equity ratio is so high to seriously affect the efficiency of fund company the high cost of capital.The paper holds that the main reasons for the above three problems are the macroeconomic depression,the instability of the enterprise management team and the excessive capital operation of the enterprise.About these problems,this paper proposes three corporate financial strategies: first,increase the debt financing within the scope of solvency.Second,Set up a good management team improves cost control efficiency.Third,appropriately reduce the total equity ratio for reducing the cost of capital.According to the above three strategies we developed using economic recovery opportunity to increase debt financing,the establishment of a stable management team with reasonable ownership structure and improve the quality of capital operation by using scientific methods of three security measures,to ensure the smooth implementation of financial strategy.Huangshan Tourism Development Co.,Ltd.has been called China's most complete tourism concept enterprise.Therefore,the financial strategy used in Huangshan tourism and its future strategy experience and lessons are of great research value,and have a great reference to other enterprises.