| With the emergence and development of new technologies such as Internet+,big data and artificial intelligence,China’s consumption structure and consumption philosophy have undergone subtle changes,and today China’s traditional retail industry is experiencing unprecedented challenges,with retail enterprises’ profit levels plummeting and business revenue growth slowing.In order to solve this problem,traditional retail enterprises have integrated modern information technology,online and offline dual channels and modern logistics systems to form a new retail model,namely new retail.The emergence of new retail has enabled many companies in the market to avoid the risk of mass closure of physical shops and has placed China’s retail industry in a new ecosystem.In this environment,an efficient and matching profitability model is directly related to the profitability level of a company,while the financial data of a company also reflects the side effects of whether its current profitability model is in line with the long-term development of the company.In this paper,Company Y,a leading company in new retailing,is selected as a case study,and the components of Company Y’s profitability model are analysed one by one,while its profitability model is analysed horizontally and vertically through relevant financial indicators.The study also examines whether the profit model adopted by the company is reasonable in the context of "new retailing".On the one hand,it can provide a proven solution for the development and operation of Company Y.On the other hand,as a representative enterprise in the retail industry,it provides a reference for other enterprises in the same industry to improve their profitability models in the new retail format.This paper uses case studies,literature research and comparative analysis to analyse the components of the profitability model.Through vertical analysis and horizontal comparison,it assesses the profitability and sustainability of Company Y’s current profitability model in the context of new retailing.Through the analysis of relevant financial indicators,the company’s operating capacity,solvency and growth capacity are also evaluated.Finally,suggestions for improvement are made.The financial analysis of Company Y’s profitability model leads to the following conclusions: Company Y’s initial exploration of new retailing is effective,but in recent years its profitability model under new retailing has suffered from a slow turnover of assets resulting in insufficient profitability,an unreasonable financing strategy resulting in high debt servicing pressure,slow growth in main business revenue resulting in slow development,and blind exploration of new business formats affecting the company’s operational effectiveness.In this regard,Company Y should continue to improve its asset turnover.In this regard,Company Y should continue to improve the speed of asset turnover to ensure the quality of profitability;formulate a reasonable financing strategy to reduce financial risks;increase the operating income of its own brand to strengthen the sustainability of profitability;and clarify the direction of new business development to maintain competitive advantages. |
