Evaluation of Profitability of a Company in the Real Estate Industry

Abstract

With the development of China's market economy, real estate investment is more and more active, and real estate transactions are more and more frequent. This paper aims to analyze the profitability of Evergrande group and explore the impact of profitability on the development of Evergrande group. The data in this paper comes from the 2015-2019 annual report of Evergrande group. Profitability refers to the ability of an enterprise to make profits. Through the analysis of profitability indicators and comparison with other companies, find out the factors that affect Evergrande group. Through DuPont analysis, this paper analyzes the net profit rate, asset turnover rate and financial leverage of these five years, and finds out the existing problems of Evergrande group and the solutions as far as possible.

With the development of China's market economy, real estate investment is more and more active, and real estate transactions are more and more frequent. This paper aims to analyze the profitability of Evergrande group and explore the impact of profitability on the development of Evergrande group. The data in this paper comes from the 2015-2019 annual report of Evergrande group. Profitability refers to the ability of an enterprise to make profits. Through the analysis of profitability indicators and comparison with other companies, find out the factors that affect Evergrande group. Through DuPont analysis, this paper analyzes the net profit rate, asset turnover rate and financial leverage of these five years, and finds out the existing problems of Evergrande group and the solutions as far as possible.