Exploring the Relationship Among the Enterprise Operation Ability, Profitability and Development Ability

Abstract

The paper explores the relationships among enterprise operation ability, profitability and development ability by applying cluster analysis and canonical correlation methods which are performed on a dataset of 30 listed household electrical appliance enterprises. The study shows that enterprise profitability and development ability are affected by operation ability, and assets turnover should be focused. Besides, the relationship between enterprise profitability and development ability is not apparent. In other words, not only profitability should be focused, but also do think about the enterprise development ability.