Study On The Profitability Analysis And Promotion Strategy Of Yuneng Holdings Based On Improved DuPont Analysis Method

During the "Thirteenth Five-Year Plan" period,China launched a new round of power system reform,and with the deepening of power reform,the monopoly situation of China’s traditional power enterprises was gradually broken,and the competition among China’s power enterprises was further intensified.At the same time,a series of uncontrollable factors such as coal prices continue to run high,so that the interests of electric power enterprises are greatly damaged,the operating costs of electric power enterprises have been high,prompting electric power enterprises to begin to transform to seek further development.Profitability is a key point that cannot be ignored in the production and operation process,and is the key to achieving competitive advantage in the industry.Therefore,it is important to analyze the profitability of the enterprise,find out the problems in the operation,find out the gap between the enterprise and other outstanding enterprises in the industry,and then solve the problems in a targeted way to achieve the improvement of profitability.This paper first explains the research background and significance in the introduction part,combs and summarizes domestic and foreign literature,and determines the research methods and framework.Then,the traditional Dupont analysis method is summarized and its limitations are summarized.The traditional Dupont analysis method is optimized and improved according to some characteristics of the power industry in which Yu Neng Holding Company is located.Based on the improved Dupont analysis method,the profitability of Yu Neng Holding Company is comprehensively analyzed.In the process of analysis,the core index of return on equity is decomposed layer by layer to find out the problems in the operation and management of Yu Neng Holding company and the reasons for low profitability,summarize the factors affecting its profitability,and then put forward countermeasures and suggestions for Yu Neng Holding Company to enhance its profitability.Through the vertical and horizontal comparative analysis of the indicators of Yuengeng Holding Company,it is found that the company has the problems of shrinking market of its main business,which hinders the growth of revenue;high operating cost,which highlights the market risk of the company;declining quality of earnings,which has hidden problems of long-term development;low efficiency of utilization of operating assets,which has weak operating capacity;high financial leverage,which has escalating financial expenses.According to the existing problems,this paper proposes the following countermeasures: the company should respond to the national policy,promote the company’s business transformation;strengthen market research and judgment,broaden revenue sources;strengthen cost control,improve the quality of earnings;strengthen management awareness,improve management capabilities;optimize the capital structure,reduce financial risks,so as to improve the company’s profitability,improve market competitiveness,and also for other enterprises in the same industry to improve It also provides reference for other enterprises in the same industry to improve their profitability.