Research On Profitability Of XP Company Based On DuPont Financial Analysis System

Profitability in the company's development process,is a strong cornerstone of the company,is to judge the company can occupy a certain share of the market basis.In today's market environment,not only the competition among the same industry is intense,but also the substitute industry also wants to gain a place in the chaotic market.Companies are at risk and want to maintain the growth of profitability is not easy.Therefore,an accurate assessment of the company's profitability is necessary.Traditional profitability analysis only selects a single financial index for analysis.In recent years,profitability analysis requires too many aspects of assessment,which is not conducive to profitability analysis and profitability implementation.Therefore,this article chooses DuPont financial analysis system to comprehensively analyze the company's profitability.This paper chooses the important financial data of XP company annual report data from 2013 to 2016 to study the company's profitability and select the return on net assets as the key financial indicators,the analysis of return on net assets for the net profit margin,total Asset turnover and equity multiplier,and then further decompose the three financial ratios according to the inherent relationship between the financial ratios to find out the reasons that affect the profitability of the enterprise.According to the internal factors and external factors,the paper analyzes the factors affecting the profitability,and finally puts forward the methods to improve the profitability.The aircraft's largest competitor-the rapid development of high-speed rail today,this article is intended to take a cost-effective airlines how to improve profitability provide a reference value for XP's management decision-making to provide reference,but also for the development of other companies in the industry to provide good reference.