How can gas companies improve their profitability? ——Based on DuPont analysis method

摘要

In recent years, due to serious environmental problems—increasing global natural gas demand, notable supply growth, LNG supply capacity expansion, natural gas consumption has increased significantly, and the natural gas industry has entered a booming stage. In this paper, China Resources Gas, a leading company in gas industry, is selected as the research object. We use DuPont analysis to analyze its financial statement from 2014 to 2017 and decompose the company’s return on net assets into the multiple of several financial ratios step by step. So the relationship between several major financial ratios can be used to comprehensively analyze the company’s profitability. Taking this as an example, the key factors affecting profitability of gas companies are concluded.