Research On The Improvement Of Profitability Of A Construction Enterprises

Since the reform and opening up in China 40 years ago,the construction industry has made good achievements in scale and quality.As a pillar industry of the national economy,the healthy development of the construction industry plays an important role in the healthy development of the national economy.A enterprise is a typical construction enterprise,the profit situation since its establishment in 2015 is not good,the net profit realized for the first time in 2017 is 0.87%,and the profitability is improved in 2018.Net interest rates rose to 2.12 percent,but the index is still below the industry average of 3.5 percent.China's construction industry has been in a state of full competition,and the profitability of the construction industry has continued to decline in recent years.Due to the influence of the industry as a whole,the future management of A enterprises will be more and more difficult,facing the difficult situation of poor profitability,it is urgent to improve the profitability of enterprises.Taking A enterprise as the case study object,this paper studies its profitability,finds out the reasons for its poor profitability,and then puts forward some suggestions for improvement in view of the problems existing in profitability,so as to help A enterprise to improve its profitability.First of all,according to the basic situation of A enterprise,the scope of vertical and horizontal research of A enterprise is determined,and the research index is briefly explained.Then,the ratio analysis method and the improved DuPont analysis method are used to study and analyze A enterprise from two aspects of profitability level and profit quality.It is found that the main problems leading to the poor profitability of A enterprise are high operating cost rate,high management cost rate and current assets.The turnover rate is low.Finally,through the deep analysis of the problem,it is found that the causes of the problem are the high unit price of material purchase,the high monthly rental price of machinery,the lax control of management expenses and the lax management of accounts receivable and inventory,which leads to the poor realization ability.In view of the problems found in the study,in order to improve the profitability of enterprise A,the following four suggestions are put forward: first,through the implementation of budget management system to strengthen the management of operating costs and improve the operating profit rate.Secondly,the establishment and improvement of the notification system strictly control the expenditure of management costs.At the same time,strengthen the management of accounts receivable and inventory,enhance the realization ability of assets.Finally,Tong Overtraining and learning to improve the financial management ability,actively do the tax planning work,and play the financial effect to help the enterprise to create more value.For a long time,the level of profitability is regarded as the key factor for the sustainable and healthy management of enterprises.Through the evaluation and analysis of the profitability of A enterprises,this paper finds out the factors related to their profitability,and finds out the problems in profitability,which has important practical value for improving the profitability of A enterprises and construction enterprises.