To weigh the comprehensive strength of an enterprise, we can start from four aspects: profitability, debt repayment, operation and development ability. Among them, profitability refers to the potential and level of profit, that is, the capital or capital appreciation ability of an enterprise, which is generally reflected in the number and level of enterprise income in a period of time. To analyze the profitability of an enterprise reasonably means to comprehensively use various eva luation systems and methods and adopt scientific and reasonable means to judge the profitability of an enterprise and make a forecast for the future. It is helpful to improve the capital structure of an enterprise, implement more effective market management, and achieve the goal of maximizing the profits of an enterprise by analyzing the methods to improve the profitability of an enterprise and then selecting the appropriate methods.
Taking Shanghai Jiahua United Co., Ltd. as an example, this paper analyzes its profitability based on the financial information of Shanghai Jiahua in the past five years. Objectively and scientifically judge the change of profit situation of Shanghai Jiahua in the process of high-level change and briefly analyze the existing problems of enterprises. First of all, the connotation, purpose, significance and content of the profitability are interpreted. Then, the background and environment of Shanghai Jiahua company are simply described. Finally, through the interpretation and analysis of the financial statements of Shanghai Jiahua company in the past five years, the profitability of Shanghai Jiahua company is analyzed through the corresponding financial indicators calculated, and the existing problems of Shanghai Jiahua are found and the corresponding countermeasures are put forward.
Key words: profitability analysis; ratio analysis; DuPont analysis