Research On The Profitability Of Agricultural Listed L Company

As a large agricultural country since ancient times,agriculture has always been the source of food and clothing for the Chinese people and the basis for their survival,as well as the basic premise of guaranteeing social stability and developing other industries,thus promoting the national modernization.In 2017,the 19~thh CPC national congress made major decisions and arrangements to implement the rural revitalization strategy and accelerate agricultural modernization.Given that the development of agricultural economy will become an important trend of the development of China's economy in the future,as a leading force of the agricultural modernization of China,the development level of listed agricultural enterprises becomes increasingly important,and profitability is one of the most important factors influencing the development of enterprises in the future.Profitability refers to the profit-obtaining ability of enterprises and is the standard to measure the income level of enterprises during their operation.The profitability of enterprises can be analyzed to evaluate its level of operation and whether it promotes the development of the industry it belongs to.At present,traditional financial analysis methods and the analysis through the single financial indicator in the accounting field are not sufficient to ensure a comprehensive and detailed evaluation of the profitability of enterprises.As a widely used and well-developed comprehensive financial analysis method,the DuPont analysis system reflect comprehensively the financial and operating conditions of enterprises through the yield of net assets as the core and the articulation among various financial indicators,so as to find out the hidden factors and deficiencies that affect the profitability of enterprises during their operation and management.Therefore,it is applicable to the evaluation of modern enterprises.In view that there are rare literature on applying DuPont analysis system to analyze and study the profitability of agricultural enterprises in China,this paper selects L company,which has been developing stably in the agricultural field of China as the study object from the perspective of DuPont analysis system,and analyzes and studies its profitability.This paper firstly introduces and analyses the basic situation of the policy trend and profit status quo of L company,and then conducts horizontal and vertical comparative analysis on L company's financial indicators based on DuPont analysis system by adopting the trend analysis method,sequential substitution method and comparative analysis method.Not only being compared with its financial data of the previous eight years,but also with the average value of the advanced level in the same industry,as well as confirming the problems existing in L company itself that will affect the profitability according to the results of the analysis.Finally,based on the analysis results and problems found,this paper proposes improvement measures for the profitability of L company,which can also provide certain references and inspirations for the operation and development of other enterprises of the same industry.