Research On The Shortcomings And Improvements Of The Dupont Analysis System Using In KC Company

With the continuous development of the modern economy,the trend of economic globalization is constantly deepening in China.Under the new situation of the world,enterprises are faced with both opportunities and challenges.How to improve the profit level,the efficient allocation of resources and the improvement of core competitiveness are the main lines of the current management.The need for information is correspondingly changed by the interest groups of investors,creditors,corporate management and government departments.All related groups want to be able to obtain the most relevant information of the cooperative enterprise,especially the financial analysis information.Dupont analysis system,as a widely used system of financial analysis,through the ROE index as the core index,step by step into sales net interest rate,total assets turnover and the product of the rights and interests multiplier,evaluate business performance and profitability of the enterprise.However,under the specific application of KC company,The author found that the dupont analysis system only includes financial information,which can not fully reflect the enterprise's strength and has certain limitations.For example,it cannot accurately assess the profitability of enterprises,lack of application of cash flow statement and lack of measures to measure the sustainability of enterprises.Aimed at the disadvantages of the traditional Dupont analysis system on the basis of the financial information of pharmaceutical enterprises,the author reconstructed the traditional Dupont analysis system,based on the operating assets and financial assets to redraw,introducing the cash index and yield,rebuild the net surplus cash recovery as the core indicators of financial analysis system,which can more fully reflect the financial situation of the enterprise in the operation process,and more reasonable quantification of the financial analysis system.Dupont analysis system is still the current corporate financial analysis is more dynamic and intuitive tool,for enterprises in the process of production and operation of "capital structure is unreasonable,can't accurate evaluation of enterprise's profit ability","interest on cash flow is not high,the lack of the application of the cash flow statement" and "risk awareness is not enough,the lack of a measure of enterprise sustainable development ability",can only rely on their own strength inability to make identification and correction of the above problems,therefore,the author on the basis of the traditional du pont analysis system has carried on the development and extension,By adjusting the assets quality analysis factors,refine assets can be divided into business assets and financial assets,to increase the attention of the enterprise the management risk and financial risk analysis,the introduction of the cash flow statement information,emphasized the cash flow of the influence of the normal operation of the enterprise development,highlight the dividend payment information and gradually attaches great importance to the cultivation of their own capital accumulation ability and so on.Through the establishment of the improved Dupont analysis system,to apply to the case enterprise,the contrast it is concluded that the new Du pont analysis system in the capital structure,the money collecting ability,the enterprise credit evaluation,internal control has a certain practical guide.Finally,based on the relevant financial analysis data of KC company again,using the Dupont analysis system,reconstruction of the company to profitability analysis,analysis it is concluded that the related factors affecting the development of the company's earnings,combining with the strategic analysis of the pharmaceutical industry,for the company in the future operation and development to provide the corresponding countermeasure and the suggestion.In the improved Dupont analysis system in the KC company financial performance evaluation and the enterprise's actual operating results are the same,proved that the improved Dupont analysis system has certain effectiveness.It can be applied to other companies in the pharmaceutical industry and even to other industries with similar business models.It provides some new ideas for the financial management function of this kind of enterprise.