Abstract
This study aims to analyze the relation between profitability and capital structure of the food industry listed company and improve their capital structure. According to income rank of the food industry listed companies in China on August 1, 2014, provided by Chinese commerce intelligence network, this study makes a study on the growth level and operating status of the food industry listed companies from their panel data of third quarter report in 2014 and the profitability of enterprises is one of the important content of corporate financial analysis; corporate capital structure directly affects the business performance and long-term development. This study selects 4 indicators which mainly affect the profitability of enterprise, uses the method of factor analysis to make the comprehensive evaluation score on the 21 representative food industry listed companies in China, and carries on the correlation analysis and regression analysis to the assets and liabilities rate of the enterprise which is a main index to reflect the capital the structure, obtains the relationship between profitability and capital structure of the food industry listed companies.
Highlights
Food industry is a production department which process and manufacture products produced by the agriculture, forest, animal husbandry, vice, fishery department to obtain food
Many scholars believe that the performance of listed companies in China's food industry rely on the support policies, which is subject to the impact of very large
With the help of statistical software, the paper uses factor analysis to study the relationship among the four corporate profitability indicators: Net Profit Margin on Sales (X1), Profit Rate to Net Worth (X2), return on common stockholders’ equity (ROE) (X3), gross profit margin on all sales (X4), and a comprehensive evaluation index of corporate earnings (Z)could be got and the correlation and regression analysis are used to study the relation
Summary
Many scholars believe that the performance of listed companies in China's food industry rely on the support policies, which is subject to the impact of very large.
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