The Analysis Of The Profitability Of Enterprise M And Its Countermeasures

With the development of the global retailing and the rapid transformation of China's retail giants,China's economy and the traditional retail industry are changing greaty with each passing day.At the same time these changes have made the net profit of M listed company plummeted after 2012,especially in recent years.The profitability of M li.sted company has seriously deteriorated and also the delisting crisis is imminent in these companies.Therefore,how to improve the corporate profitability is very important.In this paper we aim to improve the profitability of the enterprise and to find out the reasons for the decline of the net profit through the financial analysis of M listed company.At the same time,we also put forward the countermeasures and suggestions to improve the profitability of,M listed company.In this paper,through combining the practice and theory,based on the financial statement analysis system,management system and the improved Du Pont analysis system,we have analyzed the consolidated balance sheet and consolidated income statement data of M listed companies from 2008 to 2017 and its profitability at the present stage by using comparative analysis,trend analysis and factor analysis.And We have also calculated the financial indicators based on the collected report data.In addition,based on the management financial statement system,traditional statements were compiled as management balance sheet,management profit statement and management report.Also the core indicators were calculated by the improved DuPont analysis system and the difference analysis was carried out by using the relational formula.In this paper,through the above data calculation,the level of profitability and the reasons for the change of M listed companies at the p resent stage were analysed,also the effective countermeasures and suggestions for improving their profitability were made.The profitability of enterprises refers to the ability of making profits by using various economic resources in enterprises and putting them in the production.It is the comprehensive performance of enterprises' abilities in sales,cash acquisition.cost reduction and risk avoidance.The analysis of the enterprise's profitability can provide a comprehensive and clear understanding of the enterprise's past operating results,current operating status and future development prospects.The profitability of enterprises is not only one of the most important indicators to make economic decisions,but also one of the economic indicators in daily production and management of enterprises.So how to obtain a real level of profitability of the enterprise information and make the right economic decisions is particularly important.The analysis of profitability is based on the financial data which come from the balance sheet,income statement and statement of cash flows.Using the logical relationship between various projects,a series of the indicators reflecting enterprise debt paying ability,operation ability and profitability are built and also these indicators constitute the basic system of financial analysis.At the same time,considering the reasons for changes in profitability,the Du Pont analysis system and the improved Du Pont analysis system will be used to calculate the profitability.Also the factor analysis is used to make variance analysis about the causes of the change and all tliese could improve profitability of the enterprise more purposefully.