Profitability Diagnosis On HM Company

Profitability is an important aspect to measure the value of the company,is also the focus of investors care about,with only profit index to judge the company's profitability is not scientific and comprehensive scientific evaluation method should be adopted,objective and accurate evaluation of the profitability of the enterprise.HM company is a growth of forwarding company,is the tie,linking the shipper and the carrier operating income rising steadily year by year,from the point of reporting data,net assets yield(ROE)is as high as 53.75% in 2016,net profit of 11.6426 million yuan.In 2015,ROE-36.88%,and the trend of net profit was "V",indicating that although the operating income was steadily increasing,the net profit was not stable.What is the cause of HM company ROE and net profit index fluctuations?Is it a long-term cause or a temporary one?Net profit increase,profit ability is really good?In order to make the investors better understand the true profitability of enterprise,in this article,through reading a large number of literature,from the perspective of the logistics industry chain,using the MBA knowledge,through the financial diagnosis,profitability analysis,business management knowledge,find out the factors that influence the HM company profitability improvement Suggestions,help investors correctly evaluate enterprise's intrinsic value.This paper analyzes the business structure of HM company by means of structural analysis and trend analysis,and finds that the revenue of core business agent customs declaration and inspection is stable and strong for three years.Using radar map analysis,the improved dupont analysis,serial alternative method of horizontal longitudinal analysis diagnosis affect profitability reasons,from the point of transverse comparison,HM company asset utilization efficiency is high,but inferior to peer enterprises cost control ability,the main reason is that HM company transportation and warehousing outsourcing operation mode,the cost of transportation.From the longitudinal comparison,although 2016 profit increase,but the overall profitability worse than in 2015,the study found that management cost and cost of sales growth in 2016 is fast,the reason is that HM company strategic transformation increasing research and development and technical personnel to develop new products and new product sales promotion marketing,lead to development costs,labor costs increase,Performance appraisal focuses on paper profit,does not value current asset management,accounts receivable accounts for a large proportion,cash flow is insufficient,and there is no effective management system;The financing structure has the phenomenon of short loan long investment;Due to the failure of management decision making,the enterprise has a large loss and poor risk tolerance.In view of the above problems,the management proposal of HM company is put forward: relying on the stable development of main business,developing the Internet platform business,and improving the core competitiveness and profitability of the enterprise;Strengthen the management mechanism of corporate governance and internal control to reduce cost.Accelerate the collection efficiency of accounts receivable,based on cash flow and profit oriented;Develop reasonable incentive plan to improve individual and organizational performance;Develop supply chain finance and OPM policy;Strengthen the awareness of risk prevention.Through this study,I hope to analyze and diagnose HM's profitability,and find out the management problems of the company,and put forward Suggestions for improvement.