Research To Improve The Profitability Of M Company

In the past 50 years,China’s jewelry industry has developed rapidly.The industrial chain is becoming more and more perfect.The concentration of industry is constantly strengthened,and the consumption market is gradually mature.However,because of the changes in the macroeconomic environment and the deepening of the market,the jewelry market in China has changed from the original seller’s market to the buyer’s market.The competition between jewellery and jewellery enterprises is intensifying.Based on such environment,from 2013 to 2016,the operating income of M company declined.At the same time,M company invested almost naught.What is worse is that a huge amount of accounts may not be retracted.As a result,there is a big problem in M’s profitability.In order to ensure a good profit level in the fierce competition,M company should take some methods to analyze and evaluate the current profitability,aiming at improving the profitability in the future.This paper makes a comprehensive analysis of the profitability of M jewelry company based on the financial and non financial perspective.Business activities can be divided into business activities and financial activities,which can improve the accuracy of management decision-making.Based on the financial perspective,this paper selects equity net interest rate as a core index to analyze the profitability.It can effectively evaluate the profitability of enterprises.From the perspective of non-financial perspective,we choose the two aspects of macro environment and comparison with competitors.We can make up for the lack of information about profitability index analysis.Through the above analysis,found the following problems:(1)the main factors affecting commodity business profitability is the occupation managers and senior craftsmen,the lack of internal control is not perfect,lack of competitiveness;(2)the main factors affecting the profitability of assets is the expansion of the scale of fixed assets is not reasonable;(3)the main factors the impact of capital profitability is equity,bond financing purposes is not reasonable.It also puts forward some suggestions on improving the profitability of enterprises.