Research On The Financial Situation Of BH Agricultural Company Based On Du Pont Analysis System

As the backbone of national economic development,agricultural development is of great significance for China’s economic growth.Financial analysis can be used to express the desired effects of cost control,asset utilization management,shareholder return on equity,and other aspects of the enterprise.As a representative enterprise of regional economic development,the overall financial situation of BH Agriculture Co.,Ltd.is closely related to the local economy in all aspects.This article uses the Du Pont analysis system to analyze the financial situation of BH Agriculture Co.,Ltd.and provides a detailed analysis of its own industry advantages.But at the same time,with the changing international economic environment,modern enterprises are facing increasingly fierce competition,and the traditional Du Pont analysis system can no longer meet the growing industry demand.For the objective evaluation of the financial situation of enterprises,the use of financial statements has significant practical significance and development potential in improving the construction of Du Pont’s analysis system.This paper takes BH Agricultural Company as the research object.First,using the relevant theories of financial analysis,Du Pont analysis system is applied to the financial situation analysis of BH Agricultural Company,mainly from the trend of net interest rate of equity,the trend of net interest rate of sales,the trend of total Asset turnover,the trend of equity multiplier and other aspects,and points out the limitations of financial analysis of BH Agricultural Company under the traditional Du Pont analysis system.Secondly,based on the improved Du Pont analysis system,the financial situation of BH Agriculture Company was analyzed,and the data preparation of the improved Du Pont analysis system was pointed out.The balance sheet items were restated and adjusted,and the financial situation of BH Agriculture Company was analyzed and summarized from the aspects of profitability,growth ability,operational ability,debt repayment ability,and cash flow turnover.Finally,corresponding suggestions were proposed for the financial issues of BH Agricultural Company: firstly,to enhance growth momentum by accelerating industry chain integration,enhancing brand value,and optimizing the company’s capital structure;The second is to reduce costs,improve management efficiency,indirectly increase profits,and improve resource utilization by increasing investment in new technologies to promote the improvement of profitability;The third is to enhance operational capabilities by integrating transportation and distribution services and optimizing sales channels;Fourthly,by implementing a diversified development strategy,we will accelerate the recovery of accounts receivable to improve our debt repayment ability.I hope to enhance the market competitiveness of the enterprise and achieve sustainable development capabilities through the above strategies.