Financial Analysis Of JM Company Based On DuPont Analysis

In recent years,the coal market has entered a market-oriented reform process,and the problem of uneven distribution of profits in various links of the coal industry chain and coal production regions is prominent.In order to adapt to the general environment of the national coal market reform and promote the high-quality development of coal enterprises,it is very important to comprehensively and comprehensively analyze the financial problems of large coal enterprises.At present,coal enterprises generally have problems such as low management level,emphasis on business and less on finance,and the current ratio analysis method also has limitations such as single structure,lack of scientific index system setting,and contradictory analysis results,which is not conducive to enterprises to accurately grasp each operation.Therefore,improving the financial analysis method of enterprises is an effective means to improve the financial problems of large coal enterprises.The financial indicators of one-way analysis are integrated to comprehensively reflect the overall financial status and operating results of the enterprise,so as to achieve the purpose of optimizing the financial analysis results.On the basis of defining the concept of financial analysis,with the support of stakeholder theory and performance evaluation theory,the traditional ratio analysis method is used to analyze the problems of JM’s financial status and methods from solvency,operating ability and profitability.Use Du Pont analysis method to comprehensively evaluate the financial status of JM Company from financial indicators such as return on equity,net interest rate of total assets,net sales interest rate,total asset turnover rate and average equity multiplier,and comprehensively evaluate the current problems of the company.The result of the study is that:JM Company has problems such as over-reliance on policy dividends,low fixed asset management efficiency,low level cost management,and insufficient use of financial leverage.According to the research results,relevant improvement suggestions are put forward in terms of changing the marketing strategy,optimizing the capital and asset management system,improving the operation efficiency of fixed assets,and increasing the utilization of financial leverage.The research conclusions are of great significance for JM Company to improve its financial analysis methods,improve its financial management system,and improve its overall operational efficiency.The main contribution of this paper is to use the Du Pont analysis method to comprehensively analyze the financial situation of JM Company,accurately grasp the financial problems of coal enterprises,and help to improve the operation of JM Company,strengthen the level of financial management,and improve the financial management system.The research conclusions can also provide a reference for the high-quality development of related coal enterprises.