Research On The Financial Diagnosis Of The Decline Of The Profitability Of SY Technology Company

SY Technology Company is a average-size medium enterprises in the electronic information industry.Over the past 5 years,in the electronic information industry many enterprises are showing a trend of rapid development,but SY Technology Company' profitability is seriously decline since 2010.Though in 2013 the company profit ability has the trend of escalation and decline in 2014 which caused the company's price of stock fell sharply.Investors have challenged the company's development prospects.The company is facing a large business crisis.In order to find the root of the profitability decline and give advice to help SY Technology Company enhance profitability,this paper will diagnosis the financial of SY Technology Company.First,by analysising SY Technology Company operating situation including the production and sales of copper clad laminate and printed circuit,the source and destination of the company's funds,income source,profit quality,cash flow and other financial conditions to lay the foundation of financial diagnosis.Then,with the help of DuPont analysis,trend analysis and comparative analysis to analyze the reasons for the decline in profitability.Diagnosis of SY Technology Company profitability decline unhealthy financial indicators reflect is: manufacturing cost rate,poor management and expensing ratio is too high,the inventory turnover rate dropped.Furthermore,based on financial indicators of performance of unhealthy,from the management level of company development perspective,with the upstream and downstream from the perspective of enterprise relationship,operational efficiency and cost control perspective and business risks from the perspective of four aspects in-depth analysis which leading to the deep cause of the financial indicators.The company has development strategy and deviate from the market,collection policies and unperfect system.The significance of this study lies in: one is diagnosed SY Technology Company profitability declined the root and puts forward the corresponding suggestions.second is the SY Technology Company profitability decline financial diagnosis research process,including diagnosis of ideas and procedures.Provide guidance for other companies who are also faced with a declining profitability of the company's financial diagnosis.