A Study On Financial Performance Evaluation Of B Company Based On The Improvement Of DuPont Analysis System

With the deepening of economic globalization and the continuous development of our society,the uncertainty,risk and credibility of Chinese enterprises are increasing,and more external financing opportunities can not be separated from the good management of enterprises,as a result,business conditions are receiving increasing attention.For the investors,creditors,enterprise managers and other stakeholders,the objective evaluation of Enterprise Operation Status has become more and more important.As a financial analysis tool,Dupont analysis system is widely used in many industries due to its advantages.It takes the net interest rate as the core ratio,and then it can be expressed as the product of the net interest rate,the turnover rate of total assets and the multiplier of equity to evaluate the financial status and operating results of the target enterprise.However,with the modern enterprises facing more competition from domestic and foreign counterparts and the diversification of investment and fund-raising activities,the shortcomings of the traditional dupont analysis system are gradually emerging.In order to effectively and objectively evaluate the enterprise’s own operating results,it is of great practical significance to construct an improved dupont analysis system.First of all,in view of the background and significance of this article,reviewed and summarized the domestic and foreign about the tradition,Dupont analysis system of the existing problems and some corresponding improvement research,and elaborated the traditional Dupont analysis system,the basic concepts and functions of.Secondly,in view of the deficiencies of the traditional Dupont analysis system in the application of financial analysis,combined with the specific situation of the listed company of B automobile,this paper makes a revision and improvement to it,on the basis of making full use of the data of Management Balance Sheet and management profit sheet,this paper constructs an improved Dupont analysis system with sustainable growth rate as its core and cash flow index as its supplement.Finally,Take B company as a case,using the traditional and improved Dupont analysis system respectively,combining the factor analysis method to carry on the comprehensive appraisal to B Company’s financial situation from 2014 to 2019,through the contrast financial performance analysis after the result,this paper summarizes and appraises the application of the improved Dupont analysis system,and then explains that the improved Dupont analysis system can reflect the actual operation situation of B company more completely and accurately.Through the research on the overall improvement and application of Dupont analysis system,this paper aims to improve its traditional,traditional methods are not enough to improve its applicability,in order to expand its application to various fields.