Profitability Analysis And Solutions Of Railway Transport X Listed Company

Railway transport industry plays an important role in the national economy.According to public data,national railway transport industry shows an increasing trend in recent years.Under such a background,the profitability of railway transport companies becomes an important question that scholars pay close attention to.Profitability is the ability of a company to make profits and realize capital gains,which is used to measure the amount of income and the level of profit in a period of time,in order to know the profit model,earning power and prospect of the company.In this paper,X company,a railway transport company in local energy and chemical base,is chosen as the object of study.Its publicly disclosed financial data in 2016-2019 is used to analyze its profitability.Firstly,we use SWOT Analysis Method to introduce the basic situation of X company,also the financial data from income statement and balance sheet in 2016-2019 to analyze basic financial indicators and ratios of profitability.On the one hand,the average data of listed companies in the same railway transport industry is used to judge the level of X company in the whole industry and the strength of its profitability.On the other hand,by comparing the indicators of DuPont Analysis System between the leading company D and X,we could better know the differences between these two companies and find problems in profitability that X company has.With these methods,we could get the conclusion that the profitability of X company improved continually in 2016-2019,but big gap also exists compared with the same railway transport companies.In the end,we find profitability problems of X company,such as the sole profit channel,the limited profit ability,the high degree of customer concentration and the low degree of asset utilization.Therefore,we put forward proposals to improve its profitability and develop continuously.