Reseach On Countermeasures To Improve The Profitability Of J Company

The government gradually strengthened the macro control of the real estate market in recent years. Teal estate market in China is increasingly competitive. So the real estate company must have the suitable financial analysis evaluation system for surviving and developing. And it could show the real status of business operation and financial situation. To know the real profitability of the company seems very important for making a strategic decision.The traditional method for analyzing profitability is only related to a single financial indicator. It doesn’t show the whole profitability analysis. DuPont analysis model is a comprehensive financial analysis system, its’ core indicator is based on ROE. DuPont analysis model has clear structure, and it’s a typical analysis system for analyzing and evaluating profitability of the company and showing the level of return on stockholders’ equity in terms of financial way. It’s helpful for analyzing the business performance. However, company is under more complex environment and uncertain environment with the economic development. At this time, DuPont analysis is not perfect for analyzing the profitability of the company.Firstly, this article introduces the DuPont analyzing system. It breaks the core ratio into sales net interest and equity multiplier indicator. And it analyzes each indicator for the influencing of return on equity in the company. Secondly, this paper presents the shortcomings of traditional DuPont analysis system. In this paper, after the real estate company J’s nearly three years of financial data for the study were the use of traditional DuPont analysis system and the improvement of DuPont analysis system for the real estate business accounting is unique, designed in line with the real estate industry profitability analysis evaluation index system. After J according to real estate company nearly three years of financial indicators longitudinal analysis, with the industry benchmark for enterprise profitability compared to identify shortcomings. Finally, the discovery of problems in corporate profitability, the in-depth analysis of the reasons of their problems, and put forward the corresponding countermeasures, and thus to adapt the current competitive environment.