Study On The Profitability Of CD Steel Under The Background Of Overcapacity

With China's economy entering the new normal development period,due to unreasonable industrial layout,homogeneous product competition,excessive input of production factors and other factors,the vast majority of iron and steel enterprises have encountered the development dilemma of capacity increase and demand reduction.In this context,it is necessary to carry out the research on the profitability of iron and steel enterprises,so as to provide suggestions for iron and steel enterprises to adjust their profit model and improve their profitability.Profitability is the ability of an enterprise to obtain profits through the production and sale of products.The main measurement method is to comprehensively calculate the amount of enterprise income within a certain operating cycle.At present,most of the research on the profitability of iron and steel enterprises focuses on the development of the whole industry,mostly empirical research based on a large number of steel industry data,and few case studies on the profitability of a steel enterprise.Using case research method to research the profitability of Chengde Iron and steel company can enrich the theoretical literature on the profitability of iron and steel company.At the same time,with the proposal of the national "Beijing Tianjin Hebei integration" development strategy,how to grasp this historical opportunity,break through the development bottleneck,give full play to the enterprise's own advantages,and improve the enterprise's own profitability is not only related to the enterprise's development prospects,but also related to the local people's livelihood.With the continuous in-depth research of domestic and foreign scholars on the influencing factors of corporate profitability,the research on the profitability analysis system,profitability analysis index and profitability influencing factors is more comprehensive.However,due to the lack of case analysis on the profitability of an iron and steel enterprise and the poor pertinence of the profitability research,the profitability research needs to be indepth.This research takes Chengde Iron and Steel Company as the research object.Firstly,it makes a preliminary analysis of the profitability of Chengde Iron and steel by using the widely used enterprise profitability analysis method;then it analyzes the specific problems of the profitability of Chengde Iron and steel by using the DuPont analysis method;secondly,it analyzes the problems of the profitability of Chengde Iron and steel based on the DuPont analysis,focusing on Pay attention to the problems existing in the profitability of business activities and investment activities;finally,in view of the practical problems existing in the profitability of Chengde Iron and steel company,combined with the SWOT analysis of the prospect of Chengde Iron and steel company,starting from the actual situation of Chengde Iron and steel company,in order to reduce the operating cost of the company,enhance the competitiveness of the product market,improve the cash content of the net profit,improve the investment efficiency of the company,and attach importance to innovation and development Means to enhance the profitability of Chengde Iron and Steel Co.,Ltd.and achieve the goal of improving the profitability of the enterprise in the context of overcapacity.