Study on the Profitability of Fenjiu Group Based on the Financial Index System

DOI

10.2991/aebmr.k.210917.086How to use a DOI?

Keywords

Shanxi Fenjiu, Profitability, Problem, Strategy

Abstract

In recent years, the Baijiu industry develops rapidly and contributes to China’s GDP. However, with the market competition becoming more and more fierce, the Baijiu industry may be impacted. Facing the potential risk, the Baijiu industry has to improve the profitability to fit the changeable market. Fenjiu Group’s micro and macro analysis results are presented in this paper as an example. Literature research method, case analysis method, and experiential summary method are taken for deeper research. Through the calculation of Fenjiu Group’s financial index, Fenjiu Group’s gross profit margin showed a small fluctuation from 2015 to 2018. Fenjiu Group’s ROTA declined from13.2% to 12.8% between 2018 and 2019, indicating the growth of profit can’t match the recent expansion of Fenjiu Group’s asset size. In terms of investor profitability, Fenjiu Group’s ROE grew from 11.8% to 26% between 2015 and 2019. According to the above analysis, some suggestions are put forward to the existing problems, such as brand diversification propaganda, optimizing the capital structure, broadening financial channels, and controlling the expansion of asset size. The research results of this paper hope to help Fenjiu Group improve better and enhance the business value in the future.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yifan Niu
AU  - Zhaoqi Zhou
AU  - Zhuoran Wan
PY  - 2021
DA  - 2021/09/18
TI  - Study on the Profitability of Fenjiu Group Based on the Financial Index System
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 568
EP  - 573
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.086
DO  - 10.2991/aebmr.k.210917.086
ID  - Niu2021
ER  -