The Application Of Improved Dupont Analysis System In KEC Company

The energy and chemical industry is one of the pillar industries of our national economy,which has played an important role in the national economic development for a long time.However,with the continuous development of the society,a series of problems like environmental pollution,energy consumption and production safety are emerging,and increasingly become urgent social problems.On the one hand,the production activities bring more economic benefits to enterprises.On the other hand,with the development of enterprise's production,the environment on which we live has been irreversibly damaged or polluted,so the government has issued various control policies from time to time.It can be said that the risk and uncertainty of enterprise management is becoming more and more serious.It is of great practical significance to accurately analyze the financial data of an enterprise,objectively and truly evaluate the business and financial situation of an enterprise,so as to help the managers of an enterprise to make reasonable business and strategic decisions.The traditional DuPont analysis system can objectively evaluate the enterprise's financialsituation and its operation results.It takes the return on net assets as the core indicator and evaluates it by total asset turnover,net sales interest rate and equity multiplier.However,with the rapid development of the society,the economic and social environment is becoming more and more complex,the enterprise's production and operation require diversified investment and financing activities.Therefore,the shortcomings of the traditional DuPont analysis system show in the practical enterprise evaluation.For example,it is not possible to accurately evaluate the profitability of enterprises;and there is no analysis of the application of cash flow statement and no analysis of the sustainable development ability of enterprises.Meanwhile,although the traditional DuPont analysis system has universal applicability,it somehow can not analyze some aspects objectively based on the characteristics of the industry,for example,the environmental pollution,energy consumption and production safety of the energy and chemical industry.Therefore,in order to make a practical and objective comprehensive evaluation of the financial situation and operating results of enterprises,it is important and necessary to combine the traditional DuPont analysis system with the characteristics of the industry.Based on the discussion of the background,purpose and significance of the topic,this thesis reviews and summarizes the relevant theoretical research domestically and abroad.In view of the limitations of traditional DuPont analysis system in financial analysis and application,combined with the characteristics of energy and chemical industry,energy consumption,environmental protection,safety production and other social responsibility indicators,the traditional DuPont analysis system has been expanded and extended^[3].At the same time,comprehensive case analysis,trend analysis,factor analysis and comparativeanalysis are used to analyze and evaluate the company's sustainable development ability,dividend payment ability,profitability,solvency,operation ability,social responsibility and other aspects by using KEC's 2014-2018 balance sheet,profit statement,cash flow statement and other data.Through the analysis,this thesis puts forward some suggestions for the healthy development of enterprises,which can provide theoretical basis for their sustainable development.Meanwhile,the thesis also hopes to provide useful reference for other similar enterprises to conduct financial analysis and evaluation.