Financial Analysis Of Chengtou Holding Company Based On Improved Du Pont Analysis System

With the deepening of China's reform and opening up and the promotion of the market economy,the real estate industry has started in China and gradually entered the stage of rapid development,becoming one of the pillar industries of China's economy.At the beginning of the real estate industry,due to China's continuous introduction of preferential policies to support the real estate industry and the increase in residents' purchase demand,the real estate industry has a higher profit,attracting a large number of funds to enter the real estate market,and constantly towards the peak.However,the continuous introduction of regulatory policies in many places and the wait-and-see mentality of potential buyers who do not want their capital to be trapped in the real estate market have gradually reduced the heat of the real estate industry.In order to fully understand the operation status of the real estate company,it is necessary to conduct a comprehensive analysis of the company's financial reports,convert the data in the financial statements into the information needed by the users of the financial statements,and help them make reasonable decisions.This paper takes Chengtou Holding Company as the research object,conducts financial analysis on it through the use of the improved Du Pont Analysis System,and then puts forward the financial problems in its development process,and finally gives some suggestions in line with the actual situation of Chengtou Holding Company.This paper begins with the introduction of the background,purpose and significance of the research,and summarizes the relevant research literature on Du Pont Analysis System at home and abroad.Then introduced the financial analysis and the related basic theory,Du Pont Analysis System to sort out the basic situation,simple introduces and describes Chengtou Holding Company basic financial situation,then use the improved Du Pont Analysis System from the profitability,operation,debt servicing,dividend payments and the sustainable development ability and so on five aspects carries on the thorough,comprehensive financial analysis,to summarize analysis of related financial issues,specific questions for the cost management level is not high,sales of small;Inventory management ability is not strong,accounts receivable turnover rate to be improved;High levels of debt;The level of dividend payment is not high;The ability of sustainable development is declining.In view of these financial problems,this paper puts forward improvement suggestions from five aspects,that is control the operating cost,expandthe profit space,expand the sales scale and increase the income level.Pay attention to inventory management,speed up sales,increase collection strength,and promote the return of funds;Strictly control the debt level and optimize the debt structure;Increasing dividend payments and attracting investors;Enhance profitability to maintain sustainable growth.Put forward corresponding improvement suggestions from five aspects to help Chengtou Holding Company improve its operation status and improve the quality of its development.It is hoped that through the research and analysis of urban investment holding,we can help it to get out of the business dilemma and promote its healthy and orderly development.