Research On Management Strategy Optimization Of CH Company From The Perspective Of DuPont Financial System

The real economy will be the focus of our economic policy for a long time to come.As an important part of the real economy,home appliance manufacturing also occupies an important position in China’s manufacturing industry.The strength of comprehensive profitability is an important basis for judging the profitability of an entity enterprise and its future development potential.In the increasingly complex business environment,home appliance manufacturing industry faces challenges and threats from all sides.In addition to threats from potential entrants,there is also fierce competition among existing enterprises in the industry.Therefore,it is an important cornerstone for a household appliance manufacturing enterprise to improve its operating conditions and stand firm in the market competition to make an objective and reasonable evaluation of the company’s comprehensive profitability in the daily production and operation process,and to formulate effective measures for the existing problems.This paper takes CH,a large household appliance manufacturing enterprise,as the research object.Based on its financial data and relevant materials from 2014 to2018,this paper makes an in-depth analysis of its comprehensive profitability and operating conditions under the dupont financial system by combining vertical analysis with horizontal comparison.In the process of calculation and analysis,ROE(return on equity)is taken as the key core index,which is decomposed into the product of three important indexes: net profit on sales,total assets turnover,and equity multiplier,and then several important indexes are decomposed and analyzed respectively.In addition,the degree of influence of various indicators on ROE is gradually determined by the chain substitution method.Under this system,in-depth comparative analysis was conducted between CH company and the industry level,and the indicators and influence degree that caused the gap between its ROE and the industry level were determined under the serial substitution method,which were mutually confirmed with the conclusion of longitudinal analysis.Finally,based on the in-depth analysis made above,the indicators that affect the ROE level and the degree of influence are determined,and the business lines of the company are taken as the basis for in-depth mining to find out the internal factors leading to the poor performance of the ROE index of CH company.In addition,targeted optimization measures are proposed for the company’s business strategy in the future period,with a view to further improving the comprehensive profitability of CH company,improving business conditions and gaining competitive advantages.