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Analysis of Financial Condition of Chinese Listed Real Estate Companies Based on DuPont Analysis Method: A Case Study of China Evergrande Real Estate

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DOI: 10.23977/accaf.2023.040108 | Downloads: 1025 | Views: 3266

Author(s)

Yuanyuan Zhao 1

Affiliation(s)

1 School of International Education, Guangzhou College of Technology and Business, Guangzhou, 510850, China

Corresponding Author

Yuanyuan Zhao

ABSTRACT

This paper utilizes the DuPont analysis method to analyze China Evergrande Real Estate's financial situation from the perspectives of profitability, debt-paying ability, and operational capability. The results not only provide reference and suggestions for the management of Evergrande Real Estate, but also have certain reference significance for other companies in the same industry. The analysis shows that the company's profitability and quality are not ideal, with a large gap compared to other first-tier real estate companies in the industry. The company's focus on high revenue growth and cost control has led to a lack of control over sales and financial expenses, resulting in lower profits than expected. The company needs to focus on achieving profit growth rather than just scale growth.

KEYWORDS

DuPont analysis system, Financial condition, China Evergrande Real Estate

CITE THIS PAPER

Yuanyuan Zhao, Analysis of Financial Condition of Chinese Listed Real Estate Companies Based on DuPont Analysis Method: A Case Study of China Evergrande Real Estate. Accounting, Auditing and Finance (2023) Vol. 4: 53-59. DOI: http://dx.doi.org/10.23977/accaf.2023.040108.

REFERENCES

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[3] Lu J. J. "Financial Application of DuPont Analysis Method in Listed Companies: A Case Study of Company F." China Market, vol. 2018, no. 14, pp. 72.
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