Research On The Profitability Improvement Of Longji Based On DuPont Model

Solar energy is the new energy of the lowest-carbon economy.The application of solar-power-generation technology is rapidly developing globally and is maturing.With the photovoltaic industry's economic environment,policy changes,and technological innovations,China's photovoltaic companies will have to strengthen their own profitability to increase market share and achieve long-term development.The competitiveness of the enterprise is reflected in its profitability,and the financial analysis is a quantitative analysis of the profitability of the enterprise.The financial indicators in the business process can objectively and accurately reflect the profitability and existing problems of the enterprise,and guide the company in its strategy.Adjustments to further enhance profitability.This article mainly selects the Du Pont model as a comprehensive system to systematically analyze the financial performance of PV company's LONGI Company's profitability,and adopts the core financial indicators of shareholders' investment returns that best reflect the return on equity,through corporate financial statements,The relevant website's data,using the Du Pont model to conduct in-depth research on all aspects of LONGI's profitability.Specifically,it analyzes the return on net assets layer by layer,and then analyzes the profitability of the LONGI Group's production and operation,asset operating efficiency,and capital structure based on the three indicators of net profit margin,asset turnover,and equity multiplier.It also compares with other 17 representative photovoltaic companies listed in the industry to comprehensively evaluate their profitability.The business strategy and financial policies of LONGI's “high profitability,low turnover,and sound financial management” were obtained.At the beginning of the analysis,the development status of the photovoltaic industry was introduced first,and the SWOT analysis method was used to qualitatively analyze the inherent strengths and weaknesses of LONGI,the opportunities and threats faced by external parties,and assisted in the comprehensive evaluation of LONGI's shares based on thequantitative analysis of the Du Pont model.Financial management level.In the quantitative analysis process,common analysis methods such as comparison,ratio,trend,factor,and chart analysis method are also combined,which enriches the application of Du Pont analysis.Finally,this paper combines the qualitative analysis of SWOT and the quantitative analysis based on the Du Pont model,and gives a financial management plan to enhance the profitability of LONGI,and proposes safeguard measures for the implementation of the plan.Through the research of this paper,we have verified the guidance and practicality of the Du Pont model in the actual financial management analysis.At the same time,the limitations and deficiencies of the research process are summarized to provide basis for other photovoltaic companies and related personnel to analyze financial management issues.