Profitability Analysis Of YH Furniture Manufacturing Co.,LTD

After the reform and opening up,the national economy has developed rapidly,people's material life has improved rapidly,furniture manufacturing industry is also undergoing earth-shaking changes.Nowadays,the furniture classification is morediverse,the types are more complete,the technology is more exquisite,and the furniture industry has also developed greatly.As a result,the furniture industry in China is booming,and more and more large and medium-sized enterprises are eager to try this trend.With the increasing number of furniture manufacturing enterprises,some problems have appeared in the furniture market.With the fierce competition,poor quality,material control and deterioration of pollution caused by demand,furniture manufacturing industry has undergone tremendous test.Many small and medium-sized enterprises require rectification,closure or even shutdown,which has a serious impact on furniture manufacturing enterprises,and their operation and profits are in crisis.In such an environment,how to make small and medium-sized furniture manufacturing enterprises change the status quo and improve their profitability,so that they are invincible in the furniture industry,this is a topic worthy of study.As a typical small and medium-sized enterprise,YH Furniture Manufacturing Co.,LTD has experienced a glorious development stage in the late 20th century,and now it is also under the pressure of fierce competition and national policy.Based on these factors,the company's profitability,business situation and future direction of development need to be studied and discussed in order to bring better development to the enterprise.Therefore,aiming at the current profit situation of YH Furniture Manufacturing Co.,LTD,we will analyze it comprehensively,find out the existing problems of the company,and put forward the solving strategies in order to improve the profitability of the company.Firstly,through understanding the relevant research materials at home and abroad,this paper systematically grasps the relevant theory and analysis methods.Secondly,it makes a brief introduction to YH Furniture Manufacturing Co.,LTD and expounds the current situation of the company's profit management through a simple analysis of the indicators.Thirdly,it makes a comprehensive profit analysis through DuPont model and EVA analysis method respectively,and makes an overall profit analysis of its profitability.Finally,this paper puts forward countermeasures and suggestions to improve the profitability of YH company in view of the current problems.Through comprehensive research and analysis,this paper points out the problems in cost management,accounts receivable,inventory management and improving the competitiveness of the company's products,and puts forward relevant suggestions,aiming at providing solutions for the company's future profitability,and also can play a reference role for similar small and medium-sized furniture enterprises in terms of profitability.