Abstract
Financial evaluation system is a method of which completely analyzing and evaluating the capacity of gained profit, payment on a debt, operation ability and development capacity to get a round view of the enterprise's financial conditions and make judgments on enterprise's financial levels for government, investors, debtors and other stakeholders. This method is very useful for operators to improve the efficiency of management, for investors to improve the level of their decision-making, for loaners to guarantee their profits, for economical management department of government to improve the level of macro suit and control. However, in today’s marketing economy, the effect of marketing mechanism makes the profit of any market body has its unsteadiness, that is the market body inevitably has to undertake some risks. Therefore, it is very necessary to research financial evaluation system.
This thesis has 5 parts. In the first part it introduce the present situation of finance evaluation system, and this paper laid particular emphasis on the DU Pont system’s systematic research, which expands on the development and the necessary for its practice in China, In the second part, we take a company for example, it make a systematical study upon Du Pont System of financial analysis. The third part point out some problem of financial evaluation system, reveal its limitations. The fourth part point out that Du Pont System is not perfectly satisfactory, and then brought up the improvement of finance evaluation research, which focuses on the analysis of cash flow amount. The last part makes a conclusion.
Key words: Financial evaluation system Du Pont System of financial analysis the analysis of cash flow amount
