Financial Analysis Of HJ Company Based On Improved Du Pont Analysis System

With the intensification of economic globalization,the economic situation at home and abroad is more severe,and the phenomenon of supply and demand imbalance in various industries has occurred,and the petrochemical industry has also been affected.Facing the turbulence in the external market and the intensification of internal competition,enterprises need to look for development opportunities while facing the challenges.In order to cope with internal and external development challenges,enterprises need to clarify their own positioning,objectively analyze and evaluate their own development strategies and operating conditions.The Du Pont analysis system conducts financial analysis on enterprises from the perspectives of profitability,operation,and debt repayment development ability,which helps to objectively evaluate the financial status and operating ability of enterprises.With the further strengthening of the diversity of business operations of enterprises,the limitations of the Du Pont analysis system have also become more apparent.In order to make a more in-depth and comprehensive analysis and evaluation of the company’s financial status and management capabilities,the improved Du Pont analysis system has become a better choice.The thesis takes BFHJ Chemical Industry Co.,Ltd.(hereinafter referred to as "HJ Company")as the research object.First,it introduces the basic situation and business scope of HJ Company,and provides an overview of the company’s assets,liabilities,owner’s equity,and cash flow statement from 2016 to 2020.Introduce the changes of the company,and then use the Du Pont analysis system to analyze the financial indicators such as equity net interest rate,sales net interest rate,total asset turnover rate,equity multiplier,etc.The conclusion is that the operating conditions are not good,the profitability level is declining,and there are financial risks.possibility.The paper further applies and improves the Du Pont analysis system to analyze the five aspects of profitability,operation,debt repayment,development and dividend payment ability.It is believed that in terms of profitability,the cost control is insufficient and the product structure is too single,and the management of inventory and funds in terms of operation is not good.In terms of debt repayment,it cannot reasonably control financial leverage,and it does not have sufficient sustainable development capacity in terms of development.In response to the above problems,the countermeasures and suggestions are put forward to strengthen raw material cost control,enrich product structure,strengthen capital management,pay attention to inventory management,strengthen market risk prevention,and ensure the company’s sustainable development ability.