Comparative Analysis Of DuPont Analysis System Before And After Improvement

Under the background of global economic integration,international economic competition is more and more intense.Since 2014,China has actively promoted the construction of "One Belt And One Road".In the process of global economic development,China's economic status has been increasingly enhanced.This means that enterprises are faced with more competition from domestic and foreign industries.Therefore,enterprises need to have good operating conditions.However,at present,there are many uncertainties and risks in the operation of many enterprises.For the stakeholders of the enterprise,it is necessary to objectively evaluate the financial status of the enterprise.Only good operating conditions will bring more external financing opportunities for the enterprise to expand production and operation.Therefore,whether the enterprise is in good operating conditions will receive common attention from investors,creditors and the enterprise's own managers.Among various financial analysis methods,DuPont analysis system has been widely used in many enterprises by virtue of its advantages.This method,which was first used by DuPont in the United States,is called DuPont analysis.DuPont analysis is the most commonly used method to evaluate the business status of an enterprise from the perspective of finance.It mainly analyzes the ability of an enterprise in terms of profitability,debt repayment and operation,selects the main financial ratio,compares the range and direction of change,and comprehensively analyzes the business performance and financial status of an enterprise by combining with the industry characteristics.At present,the traditional DuPont analysis system can not fully apply to contemporary enterprises,because many enterprises,influenced by the rapid economic development and various forms of investment and financing activities,require more and more stringent financial analysis.In order to conform to the actual situation and objectively evaluate the operating results of enterprises,it is of more practical significance to improve the analysis method in line with modern enterprises on the basis of the traditional DuPont analysis system.First of all,this paper discusses the reasons for the topic selection and the significance of the research under the background of economy,and summarizes the domestic and foreign scholars' research literature on DuPont analysis system,demonstrating that the traditional DuPont analysis system has advantages but also has limitations.Secondly,based on the traditional financial statements,classify the activities of enterprises and compile the financial statements for management.In view of the deficiency of the traditional DuPont analysis system,the improved DuPont analysis system can increase the sustainable growth rate,dividend payment rate and other financial indicators.Finally,by analyzing the case of Haier company as respectively and improve the traditional DuPont analysis system is used to Haier from 2013 to 2017,financial status were analyzed,and through comparing the different analysis results,found that improvement of DuPont analysis system more complete and accurate to reflect the actual operation of the Haier,finally to review and summarize its advantages.To sum up,through the comprehensive analysis and summary of DuPont analysis system before and after the improvement,this paper aims to show that the improved DuPont analysis system is more applicable to the current economic environment and has more universal practicability than the traditional DuPont analysis system.