The Enterprise Diagnosis Export On X Building Materials Company Based On The Financial Perspective

With the construction of a large number of China’s rapid economic development andinfrastructure projects, as the upstream steel production chain of raw materials, using calciumoxide metallurgy (lime) demand is very large,Hebei province is a steel large province, theprovince’s production of iron and steel enterprises dozens of metallurgical lime, annualconsumption amounted to20000000tons, the market demand a very broad space. In recentyears, the iron and steel industry of metallurgical lime equipment technology has been rapiddevelopment,but at present, active lime kiln type capacity can only meet half of the totalamount of iron and steel production,there are still about40%of the backward productioncapacity, which is exacerbated by the production of calcium oxide metallurgy enterprisemarket competition, also offers the opportunity for their development.X building materials company to metallurgy with calcium oxide production and salesfor the main business, is abuilding materials such as private enterprises, is a sub company ofgroup of companies, the other brothers were also engaged in calcium oxide, iron and steel,electrolytic aluminum and other building materials industry, theproduction and businessoperation can fully enjoy the group company production and management superiority, themain products calcium oxide and calcium oxide powder block. From2011-2013annualfinancial statements, Xbuilding materials company’s main business sales increased year byyear, but profits fell, in2012the company net assets income rate is far lower than the growthrate of the company plans, but there has been negative growth.Although in2013net profit ofthe company have rebounded, but relative to2011, the net assets of the company is still asubstantial decline in rate of return. This shows that the company’s current profitability is poor.Therefore, in this paper the diagnosis by X building materials company, find out the rootcause and company internalmanagement problems, and put forward relevant suggestions forimprovement.Firstly, through the analysis of various financial ratios of X building materials company’sliquidity, profitability,growth and safety, and through the radar chart horizontal contrast to diagnose the status quo of the company, and then through the longitudinal comparisondiagnosis problems causes by DuPont analysis method and the method of serial replacementtools and so on, and finally proposes some suggestion for improvement. According to theanalysis, the2013X building materials company’s equity capital return rate is18.21%, muchlower than the201221.26%. The cause of equity returns decline is: the company’s assets useefficiency is not high. According to the existing X building materials company’s problems,this paper finally put forward by the increase in fixed assets useefficiency, speed up thewithdrawal of accounts receivable and expand the company’s business scope and othermeasures to improve the efficiency of the assets of the company and other measures, as wellas for the long-term development of the company also put Xiang Yingjian on.