Analysis Of Profitability For JL Company Based On DuPont Financial Analysis System

For most companies,maximizing profits is the ultimate goal of their business development,and the ability of companies to make profits is expressed through profitability.Generally speaking,the traditional analytical methods of profitability only use unitary financial indicator for analyzing and researching.At this time,the profitability analytical system lacks comprehensiveness and integrity,thus the profitability of some enterprises cannot be evaluated by mentioned analytical system comprehensively.DuPont Financial Analysis System is a comprehensive financial analytical method.It has some significant analytical results by using the method which combined business results and financial status,when comprehensively analyzing the profitability of a company.Financial analysis does not only analyzes the historical and current status of the company,but also predicts the future development and profitability of the company based on the results of the analysis,and provide some more accurate results on the company's profitability level.The structure of this paper consists of six parts.The First part of the paper is introduction.It mainly expounds the research background and significance of this paper.It summarizes the researching results and global development about this topic.Then it introduces the researching ideas and contents of this paper,and finally summarizes research methods and innovations.The second part expounds the relevant theories and influenced factors of profitability,as well as the related concepts and theoretical basis of DuPont's Financial Analysis System,and introduced the important indicators of listed companies'profitability analysis,which provides the basis for the analysis and research of JL's profitability.The third part introduces the basic situation,financial status and development strategy of JL Company,and makes a simple comparison of the company's profitability related indicators in recent years.The fourth part analyzes JL company by using DuPont Financial Analysis System primarily,and adds the analysis of profitability indicators related to listed companies.Then it summarizes the problems about JL's profitability,and it analysis the reasons for JL's problems.The fifth part puts forward by corresponding countermeasures and suggestions for the problems raised from JL company.In the end,it summarizes the researching results,shortcomings and prospects in this paper.