Author(s)

Teng Fei ¹, Hongyu Huang ¹, Yongfang Ma ²

Affiliation(s)

¹ School of Economics and Management, Harbin Cambridge University, Harbin, Heilongjiang, 150030, China
² Public Administration and Law School, Northeastern Agricultural University, Harbin, Heilongjiang, 150030, China

Corresponding Author

Yongfang Ma

ABSTRACT

In the upsurge of global economic modernization, China's economy has been developing steadily since the reform and opening up, and strategic management has been fully applied in enterprises. According to the economic development of today's society, profitability analysis can describe in detail the economic situation of the business benefits of enterprises, so people will pay more and more attention to the profitability of enterprises. The purpose of enterprise operation is to create profits. Profitability analysis plays a role in supervising and guiding the development of enterprises. It can help enterprise owners or shareholders understand the income and main business costs of the enterprise, and intuitively reflect the increase and decrease of the operating profit and net asset income of the enterprise through data. Therefore, only by improving the profitability of the enterprise can the economic income of the enterprise be effectively improved and the enterprise be in a stable position in the fierce social competition. Profitability analysis is of great significance for enterprises. This paper takes architectural decoration companies as the main research object. Starting from the market background and profit status quo of this type of company, the profitability analysis is taken as the theoretical basis to analyze the profitability indicators of Yongshun Architectural Decoration Co., Ltd. in the past five years. In terms of profitability, it is found that the enterprise has problems such as slow inventory turnover speed, insufficient cash guarantee ability, higher financial risk under expansion strategy and low profit rate of main business, and proposes solutions to the corresponding problems, in order to effectively improve the profitability of Yongshun Building Decoration Company.

KEYWORDS

Profitability, Inventory turnover, Cash guarantee, Decoration Engineering Company

CITE THIS PAPER

Teng Fei, Hongyu Huang, Yongfang Ma, Profitability Analysis of Decoration Engineering Company—Take Yongshun Architecture as an Example. Accounting and Corporate Management (2023) Vol. 5: 73-86. DOI: http://dx.doi.org/10.23977/acccm.2023.050610.

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