Financial Analysis Of Hegang Stock Company Based On Improved Dupont Analysis System

In recent years,the world's macroeconomic recession,especially since the outbreak of the economic crisis in 2008,has been in a state of slow growth,China's economic and social development is also facing the problem of slow growth.In this case,the demand for iron and steel in the world has been greatly reduced,the total production capacity has been seriously excessive,and the price of steel has been decreasing.The income of iron and steel enterprises has been greatly reduced while the operating cost has been increasing.As a result,a large number of iron and steel enterprises are facing the risk of bankruptcy,and the global iron and steel industry has entered a period of low ebb.As one of the largest enterprises in the iron and steel industry in China,financial analysis of Hesteel Company Limited will find the problems in its business activities,help to improve its overall efficiency and financial management level,and enhance its competitiveness in the international and domestic markets.Therefore,a thorough study of the financial situation of Hesteel Company Limited has important guiding value for its implementation of scientific and effective financial management activities,and also has important reference significance for other iron and steel enterprises.This paper takes Hesteel Company Limited as the research object,through the decomposition of the index of the improved DuPont analysis system,to analyze the profitability,operation ability,debt paying ability,dividend paying ability and sustainable development ability of Hesteel Company Limited,and accordingly put forward some suggestions and countermeasures which accord with the actual situation of Hesteel Company Limited.Firstly,starting from the research background,purpose and significance,this paper summarizes the current research situation at home and abroad,and introduces some research methods adopted in this paper.Secondly,it lists the basic methods of financial analysis,i.e.comparative analysis,ratio analysis and trend analysis,expounds the characteristics and defects of these single analysis indicators,and leads to the comprehensive analysis method,i.e.Dupont analysis system.By elaborating the relevant theories of the traditional DuPont analysis systemand its shortcomings,the traditional DuPont analysis system has formed an improved DuPont analysis system with sustainable growth rate as the core by introducing sustainable development capacity indicators,dividend payment information,cash flow data and so on.Thirdly,it introduces the basic situation of Hesteel Company Limited,including the scale of operation,main business,organizational structure and core competitiveness,so as to facilitate readers to grasp macroscopically.Then it relies on the improved DuPont analysis system from microcosmic point of view,based on the financial data of Hesteel Company Limited from 2014 to 2018,and from profitability,operating ability,solvency and dividend paying ability.And sustainable development capacity and carry out in-depth analysis at different levels.Finally,aiming at the problems and shortcomings found in the process of analysis,this paper puts forward some suggestions for improvement from various aspects to help Hesteel Company Limited improve its financial situation and achieve high-quality development.It is hoped that the above research and analysis will be helpful to accelerate the structural reform of the supply side under the new situation and promote the healthy and orderly development of the iron and steel industry.