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ESH Company Profitability Study Based on the Dupont Financial Analysis
- 1 Xi’an Jiaotong University
* Author to whom correspondence should be addressed.
Abstract
The Dupont financial analysis is a comprehensive financial analysis method. When analyzing the profitability of an enterprise, it can combine the operating results with the financial status, so it can not only analyze the historical situation and current situation of the enterprise, but also predict the future development status of the enterprise according to the analysis results, which can more accurately evaluate the profitability of the company. Based on the Dupont analysis framework system, this paper takes ESH Company as the main case object, analyzes and studies the company's profitability data by using the company's published financial reports from 2019 to 2023, and finds out the problems in the business activities or the deviations in the development decisions of the enterprise. And put forward corresponding improvement measures for the company to improve profitability. The analysis finds that enterprises can maintain profits and stable operating income while increasing financial leverage. But at the same time, ESH company also has some problems in profit, mainly due to the increase in operating costs caused by the sharp compression of corporate profits. In this regard, the author believes that enterprise managers should take a more prudent attitude to make strategic decisions, so as to avoid the compression of profit margins and the situation of the enterprise into the loss.
Keywords
Dupont Financial analysis system, profitability, ESH Company
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Cite this article
Liu,S. (2025). ESH Company Profitability Study Based on the Dupont Financial Analysis. Advances in Economics, Management and Political Sciences,167,10-16.
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