The Financial Management Research Of Jiangling Motors Co., Ltd. Based On Do Pont System

Financial management has become the core part of business administration with the increase of market competition. Raise, use, and distribution of capital are all concerned of financial management. The financial information is throughout business working. All business problems could behave financial affairs. Financial analyse is the popular method to study financial management.Jiangling Motors Co., Ltd (JMC) is a public company, which financial management is based on financial ratios analyses. But financial ratios analyses show little information on company's integer operating performance, and can not be used to explain the standard of company synthetically. Du Pont system is the most proper financial analysis method for the operating performance evaluation of public company. This article accepts the Du Pont system as the model to research the financial management of JMC. The core index of Du Pont system is Rate of Return of Common Stockholder's Equity (ROE), on which the Du pont system can be analyzed on gaining profit capacity, capital operating capacity and capital structure. Based on Du Pont system, this article also used defilement financial method and instrument such as What-If analysis, ratios analysis, tendency analysis, percentage analysis and many graph to study each factor concerned Du Pont system of JMC, and point out the advantage and disadvantage of the financial management of JMC. At the end of this article, the main problems of cost control, capital operating and capital structure will be explained.This article tested reliability and practicability of Du Pont system in analyzing the financial management of JMC, and provide the guideline and method to financial report users to realize the financial management effectively.