The Improved DuPont Analysis System Applied In The Financial Analysis Of Vanke

With the increasingly fierce competition,the uncertainty and risk of enterprise management is unceasing increase,good reputation and more external financing opportunities cannot be separated from good business performance,these factors bring more attention on the operating performance of the enterprises.Therefore,for stakeholders,creditors,managers and other related person,it is especially crucial to evaluate the overall operating performance of the enterprise.DuPont analysis system as a financial analysis method is widely used due to its own advantages.Return on Equity is the core rate of the DuPont analysis system,and then it is broken down into three basic financial indicators,including net profit margin,total assets turnover and equity multiplier,DuPont financial analysis system gives an overall analysis on the financial position ? operating results of the enterprise and profitability.However,the modern economic environment is increasingly complex,investment activities and financing activities is also increasingly diverse,the disadvantages of the traditional DuPont analysis system are gradually emerging.To evaluate the business performance of companies objectively,constructing an improved DuPont analysis system is of great importance.Firstly,this paper discusses the research background and significance,reviews and summarizes research at home and abroad concerning to the existing application problems of traditional DuPont analysis system,and the improvement research.And then through explain the traditional DuPont analysis system model to introduce its basic concept and function.Secondly,this paper considering the disadvantages when the traditional DuPont analysis system is used in the financial analysis,and then discuss the improved DuPont analysis system which considers the specific circumstances of the real estate industry,introduces the sustainable growth rate as the new core indicators,take the cash flow indicators into consideration,and make full use of the balance sheet and income statement for government date.Finally,this paper uses the traditional DuPont analysis system and the improved DuPont analysis system,combining with trend analysis method and interlocking substitution to analyze Vanke from 2010 to 2015 financial conditions,then concluded the improved DuPont analysis system can be more comprehensive and accurate to reveal Vanke's operation performance.In short,this paper constructs an improved DuPont analysis system and apply it to the practical,through the analysis of the case to improve the existing deficiencies and enlarge the application scope of DuPont analysis system.