Analysis On The Profitability Of Yuyue Medical Equipment&Supply Corporation Based On Improved DuPont Analysis

Nowadays,the medical device industry has become an important guarantee for people’s life and health,especially in the post-epidemic era,countries around the world generally realize that the medical device industry is closely related to the life and health of residents.With the rapid development of economy,urbanization,increase in consumption level and aging of population,people’s consumption structure is also upgrading and changing,and under the impetus of these many factors,the gross product and sales of medical instrument industry in China are steadily and orderly growing.As the second largest medical device market in the world,China has introduced a series of policies to support domestic medical devices,but in general,the market share of the domestic medical device industry is not high and product homogenization is serious.Considering that profitability is the basis and driving force of a company’s development and is a decisive factor for the company’s development,the author believes that it is particularly important to study the profitability of medical device companies.Yuyue Medical Co.,Ltd.is a domestic leader in the field of producing intelligent home medical equipment products,and has maintained considerable earnings revenue for many years,but its profitability level has fluctuated in the current post-epidemic era.Considering that Yuyue Medical Co.,Ltd.is an excellent enterprise in the medical device industry,it is representative to use Yuyue Medical Co.as a case study.This thesis starts with the current characteristics of the medical device industry as the entry point,and then uses the information of the company and its financial statements as the basis,and optimizes and improves the traditional Du Pont analysis system by combining the comparative analysis method and trend analysis method in the analysis process.The profitability of Yuyue Medical Co.,Ltd.was first analyzed vertically with the improved Du Pont analysis system,and then analyzed horizontally in comparison with the benchmark company Meizu Medical Co.By comparing the improved Du Pont analysis system before and after its application to the profitability analysis of Yuyue Medical Co.After an in-depth study,the results of this thesis reveal that Yuyue Medical Co.,Ltd.has problems such as high costs and expenses,low cash flow from operating activities and weak sales capacity in its profitability process.In response to these problems,the author provides corresponding suggestions for the company to improve its financial management so as to increase its profitability level.Based on the actual current situation of Yuyue Medical Co.,Ltd.and corresponding to the current era of the medical device industry,this study argues that Yuyue Medical should combine its own advantages to grasp policy opportunities,strengthen its management system,make good use of information channels to reduce costs,improve its sales capacity,and pay attention to the flow of cash flow from operating activities to drive the future development of the company’s profitability.Since there is little literature on the post-epidemic perspective at home and abroad,and there is little literature on the medical device industry using the Du Pont analysis system,this study is also relevant to other companies in the medical device industry.