Analyze The Financial Position of a Business Based on its Profitability. Empirical Evaluation at Baoviet Life Corporation

Abstract

The article evaluates the financial position and profitability of the business through the profit ratio. Using the research method of collecting and analyzing data, the research team presented an overview of the research contents such as the theoretical basis of corporate financial analysis, profitability assessment, and calculation method calculation of the rate of profit. To illustrate how to calculate and apply the profit margin method in practice, the research team has conducted an empirical assessment of the profitability ratios at Baoviet Life Corporation. The research results show that the business results, the rate of return on invested capital, total assets, and equity of the insurance enterprise are not good, the profit rate has decreased continuously for five years. At the same time, through the analysis method, which is the exclusion method and the Dupont method, the research team also points out the factors that need to be considered and changed to help the profitability of the business better. The research results confirm the importance of profitability ratios when evaluating the business results of enterprises because, in the financial statements of Baoviet Life Revenue Corporation, Profits increased continuously but profitability decreased.