Research On Profitability Of AF Company Based On DuPont Analysis System

As an important basis for enterprise operation and development,profitability is an important driving force for enterprises to carry out daily business activities and the main way for enterprises to achieve financ.ial goals.In the macro environment of fierce competition,enterprises to get long-term stable development,it is necessary to maintain long-term profitability.However,for ordinary listed enterprises,it becomes the top priority to achieve higher sales performance,maintain higher profitability and obtain good operation status.When the comprehensive performance of enterprises is not high,some listed enterprises use false financial statements to mislead investors,leading them to make incorrect judg:ments when judging the real operating conditions of enterprises.Therefore,it has become an important method to understand the real profitability of enterprises to use financial research to deeply study the historical information and current situation of enterprises and to evaluate the profitability of enterprises with relative accuracy.There is a certain relationship between the development of a certain enterprise and the internal financ.ial level of the enterprise,but the financial level of the enterprise can be obtained from the financial research results.This paper focuses on the use of dupont financial model for evaluation.This paper first expounds the different financial analysis methods currently used,and emphasizes that dupont financial model is relatively accurate in evaluating the profitability of listed enterprises.Then,it introduces dupont financial analysis theory and its limitations in detail.Secondly,starting from the financial situation an;d strategic layout of AF company,this paper analyzes its financial profit model and analyzes the current situation of the company's profitability.It includes stability analysis,persistence analysis and main profitability index analysis.Then,on the basis of dupont analysis theory,this paper selects roe as an important indicator,conducts a comprehensive study on roe,and decompose and analyze roe,net interest rate on sales and driving factors of total asset turnover.It also points out the main factors affecting the profitability of AF company and analyzes the main reasons for the decline of profitability.Finally,based on the above analysis,this paper proposes a solution to the problem of improving the profitability of AF company,and proposes measures and Suggestions for the implementation of the specific plan.In a word,this paper takes the applicability of dupont financial model in the evaluation of corporate profitability as the main obj ective,and carries out a comprehensive and scientific research on the profitability of AF company.