Analysis And Research On The Profitability Of MZ Enterprises

Profit is an embodiment of the ability to gain profit in the process of business operation.Enterprises use their own funds and various economic resources to make profits through production and sales.The level of profitability reflects the profit-making efficiency and management level of an enterprise.It is an important indicator to judge the level of an enterprise's management.Through the analysis of profitability,we can check the problems in the past business process,view the current business results of the enterprise,and judge the future development trend of the enterprise.By comparing the profitability of enterprises in the same industry,we can analyze the position of an enterprise in the whole industry.Therefore,for investors and operators,obtaining the true profit level information is the premise of making decisions and the important guarantee of making decisions.Under the background of opportunities and challenges faced by rubber and plastic products industry in recent years,this paper uses trend analysis,comparative analysis and DuPont analysis to study the profitability of MZ company.First of all,through the 2014-2018 annual report of the company,the financial situation of MZ company was comprehensively grasped.On this basis,this paper analyzes MZ company from the perspective of DuPont analysis system,and studies the change trend of the return on net assets,turnover rate of total assets,net selling interest rate and equity multiplier of MZ company over the years.Then we compare the financial indicators of MZ company with three competitors in the same industry.Then we compare the financial indicators of MZ company with three competitors in the same industry.Through comparative study,it is found that the management direction of MZ company is in line with the needs of market development,and the company's profit composition has always maintained a stable level.However,the production cost of MZ company is higher than that of competitors in the same industry,the turnover rate of accounts receivable is low,the investment in R & D is low,and the equity multiplier of MZ company is too low,so its business operation is greatly affected by the market.Therefore,this paper puts forward the corresponding solutions from the aspects of strengthening cost control,optimizing the use of financial leverage,increasing scientific research investment,strengthening credit management,strengthening market risk prevention,etc.,in order to provide more targeted reference for the further improvement of MZ company's profitability and the improvement of the overall business level of the enterprise in the future.