Analysis And Research On The Profitability Of JD Group

In 1995,Amazon and e Bay were established in the United States.Since then,this kind of economic activity based on the Internet for goods and services transactions has spread rapidly around the world.E-commerce originated in Europe and America and flourished in Asia.Today,China has become the largest e-commerce market in the world.2014 was the fastest year for China's e-commerce development.Large-scale e-commerce companies including JD.com went to the US for listing.However,the fate of e-commerce companies after the listing was different.Some companies left the market due to poor profitability.Some companies have expanded their business and improved their profitability.Overall,although China has a large e-commerce market and a large number of e-commerce companies,the industry's profitability is not optimistic.Profitability reflects the ability of a company to make a profit in a certain period of time.It is the basis for the company's future survival and development,and affects the competitiveness of the company in the market.Therefore,how to improve their own profitability and improve their profitability is a question that enterprises need to think for a long time.This article takes JD.com as the research object.As a representative B2 C e-commerce enterprise in China,JD.com facing the pressure of external competition.The situation of continuous loss since the establishment of the company has become a pain point that JD.com cannot avoid in the future development process."From 2015 to 2017,JD.com was shorted for three consecutive years.The short-selling organization pointed to the continuous rise in the market value and the year-on-year loss of JD.According to the 2018 semi-annual profit statement disclosed by JD,its net profit is-680 million yuan,and the company is still in a loss state.With the slowdown of JD's growth in recent years,JD's profitability will be affected.so it is extremely necessary to analyze the profitability of JD.com and find ways to improve the profitability of JD.This article consists of six parts.The first part of the paper briefly describes the research background and significance of the research,and reviews the literature related to profitability and profit model.The contents of relevant research methods and research results are also explained in this part.The second part of this paper introduces the theory of profitability and profitability.The third part of the article analyzes the profitability of JD.It is the key chapter of this article.After analyzing the profit model of JD.com,this part analyzes the profitability of JD.com from a financial perspective by using Du Pont analysis.The fourth part of this paper summarizes the causes of JD's profitability problem based on the analysis results of the third part.The fifth part gives solutions to the problems raised in the fourth part of this paper.The sixth part is the conclusions,shortcomings and prospects.I hope that through the research of this article,it can effectively improve the profitability of JD.