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Probe into the application and improvement of DuPont analysis method -- Taking Yuantong express company as an example

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DOI: 10.23977/fmess2020.011

Author(s)

Xinrong Liu, Lu Wang

Corresponding Author

Xinrong Liu

ABSTRACT

DuPont analysis is a comprehensive financial analysis method, which takes equity net interest rate as the core, and comprehensively analyzes the profitability, operation ability and debt paying ability of enterprises. Taking Yuantong express company as an example, this paper uses DuPont decomposition and triple factor analysis to analyze the financial data of the company in 2016-2017 and 2017-2018 respectively and comprehensively. Combined with the development goal of the enterprise, this paper puts forward some suggestions for the short-term and long-term financial situation of the enterprise, such as strengthening the cost monitoring, improving the utilization efficiency of current and noncurrent assets, and optimizing the financial leverage. In addition, the deficiencies of DuPont analysis system, such as: the factors affecting the performance of enterprises are not considered comprehensively, the cash flow statement is not fully utilized, etc., and the corresponding supplementary scheme is proposed. This paper takes the SWOT supplementary analysis of Yuantong express company as an example to illustrate.

KEYWORDS

DuPont analysis, Triple factor analysis, Enterprise development analysis, Yuantong express company

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