Analysis Of Profitability Of Real Estate Listed Companies In Beijing,Shanghai And Shenzhen Based On Random Forest

Profitability reflects the ability of enterprises to gain profits by using their own capital.The strength of profitability reflects the operation and management of an enterprise and the future development prospect,which is the basis for an enterprise to survive.The real estate industry is the pillar industry of our national economy,which is of great significance to the development of the economy.As the economically developed areas in Beijing Shanghai,and Shenzhen,the profitability of the listed real estate companies in the three places is the focus of all sectors of the society.Based on the previous studies,according to the development of Beijing,Shanghai and Shenzhen real estate companies,choosing appropriate profitability indicators,the 57 listed real estate company of Beijing,Shanghai and Shenzhen is classified,and the RandomForest model is established.The study found that the profitability of Beijing,Shanghai and Shenzhen listed real estate companies show balanced distribution.In Beijing,Shanghai and Shenzhen,the real estate listed companies in Shanghai have the most strong profitability,which have the most good profitability companies and the least weak profitability.The most real estate listed companies in Beijing are in middle and weak profitability.The real estate listed companies in Shenzhen are between them.Random forest model is good for the data to establish the classification model,but when establishing the model,the quantity of decision tree and node classification variables should be chosen suitably,and random forest model gives the importance of classification variables.According to the order of importance,we can see the most important index that impact on profitability.Based on the analysis above,according to the current situation of China's real estate industry,for the healthy development of the real estate industry and Real Estate Company to improve the profitability,the paper provides corresponding policy recommendations,which is a reference for the future development direction of Real Estate Company.