Analysis of DuPont analysis method: financial analysis of the New Retail Group Co., Ltd

Analysis of DuPont analysis ：

Financial analysis of the New Retail Group Co., Ltd

, DuPont analysis makes use of the internal relationship between various financial ratio indicators , A method of comprehensive analysis of an enterprise's financial situation .

advantage ：

1） It helps the enterprise management to see more clearly the determinants of the return on equity capital , And the net profit margin of sales and the turnover rate of total assets 、 Correlation between debt ratios .

2） It provides a clear roadmap for the management to examine the efficiency of the company's asset management and whether to maximize the return on shareholders' investment .

shortcoming ：

1） Over emphasis on short-term financial results , May encourage the short-term behavior of the company's management , Ignore the long-term value creation of the enterprise .

2） Financial indicators reflect the past operating performance of the enterprise , Measure whether enterprises in the industrial age can meet the requirements .

3） In the current market environment , The intangible assets of an enterprise are very important to improve its long-term competitiveness , DuPont analysis can not solve the valuation problem of intangible assets .

The core of DuPont's analysis is the return on equity （ROE）, It reflects the profitability of the capital invested by the owner and the financing of the enterprise 、 investment 、 Efficiency of activities such as asset operation .ROE  It depends on the level of return on total assets and equity multiplier . There are three main factors ： Net profit margin 、 Total asset turnover and equity multiplier .

DuPont analysis ： The finance of the New Retail Group Co., Ltd

Net profit margin ：2020  The net profit margin of the company in  15.76%, Higher than the average value of the main board of the industry , Higher than the average value of the new third board . Net profit margin refers to the percentage of net profit from operation in net sales , Or as a percentage of the invested capital . This percentage can comprehensively reflect the operating efficiency and profitability of an enterprise or an industry . Increasing the net profit margin can increase the net asset liability ratio , Make the company reach the optimal operation mode . There are two ways to improve the net profit margin ： Increase the bargaining power of the company or reduce costs .

Turnover of total assets ：2020  The total asset turnover rate of the house in is  24.62%, Higher than the average value of the main board of the industry , Higher than the average value of the new third board . The total asset turnover rate is the ratio of the net sales revenue of an enterprise in a certain period to the average total assets , It is an indicator to measure the ratio between the scale of asset investment and the level of sales . It reflects the company's utilization efficiency of total assets . When the gross profit margin cannot be effectively increased , Enterprises can achieve a better return on net assets by increasing the turnover speed of total assets .

Equity multiplier ：2020  In, the equity multiplier of the company was  2.12, Higher than the average value of the main board of the industry , Higher than the average value of the new third board . The equity multiplier reflects the size of an enterprise's financial leverage , The greater the equity multiplier , It shows that the smaller the proportion of capital invested by shareholders in assets , The greater the financial leverage . It is mainly affected by the asset liability ratio , However, relevant risk factors should also be taken into account , Such as ： Repayment risk 、 Capital turnover risk, etc .

Analysis of the three dimensions of the financial indicators of the joint-stock enterprises of the incredibly home new retail group ：

1.  Asset composition

Asset composition analysis is based on the different division of enterprise assets , To analyze the impact of different types of assets on enterprise risk 、 The impact of earnings and liquidity , It is conducive to improving the application efficiency of enterprises to different types of assets . This analysis generally focuses on the financial assets of enterprises 、 Proportion of long-term equity investment and operating assets in total assets .

2020  year , The total value of the enterprise is about  1554531.42 Ten thousand yuan assets , Among them, financial assets account for  48.3%, Proportion of long-term equity investment 0.0%, Proportion of operating assets  51.7%. In terms of the proportion of assets , The company is a heavy asset operation .

2.  Ability to grow

The growth ability presents the long-term expansion ability of the enterprise and the future production and operation strength of the enterprise , Including the growth rate of operating revenue 、 Operating profit growth rate and net profit growth rate , The faster the growth rate of enterprises, the stronger their growth ability . Revenue growth rate ：-1.01%

2020  year , The growth rate of the operating income of the house is  -1.01%, It is lower than the average value of the main board of the industry , Lower than the average value of the new third board . The index is below 10%, It indicates that the current business condition of the enterprise is poor . In the past three years , The business income of the enterprise continues to decline , And the descending speed is slow ,2020  The growth rate in was slower than that of the previous year . Operating profit growth rate ：-24.92%

2020  year , Unexpectedly, the operating profit growth rate of the home is  -24.92%, It is lower than the average value of the main board of the industry , Lower than the average value of the new third board . In the past three years , The operating profit of the enterprise decreased , And the descending speed is slow ,2020  The growth rate in was slower than that of the previous year . This indicator is related to the product sales quantity , Unit product selling price , Manufacturing costs , And the ability of enterprises to control management and sales expenses . Net profit growth rate ：-55.03%

2020  year , The net profit growth rate of the house is  -55.03%, It is lower than the average value of the main board of the industry , Lower than the average value of the new third board . In the past three years , The net profit of the enterprise decreased , And the descending speed is slow ,2020  The growth rate in was slower than that of the previous year . To judge the quality of profit, we need to consider whether there is enough cash to support the net profit , It needs to be analyzed in combination with the indicator of net interest rate of operating cash flow of profitability .

3.  Solvency

Solvency refers to the ability of an enterprise to repay long-term and short-term debts with its assets , reflect

The financial status and operating capacity of the enterprise

An important sign of . Short term solvency includes current ratio and quick ratio , The greater the ratio, the better the solvency , But it will have an impact on the profitability of the enterprise ; Long term solvency includes asset liability ratio and long-term debt service ratio , The smaller the ratio, the smaller the repayment risk .