1. It can comprehensively reflect t

1. It can comprehensively reflect the financial situation of the enterprise The core indicator of DuPont analysis system is net interest rate of equity, It can also be called return on net assets or return on shareholders' equity. Its main feature is that the net interest rate of equity of enterprises is decomposed into financial indicators such as net interest rate of sales, turnover rate of total assets and equity multiplier step by step. Net sales interest rate and equity multiplier are the core indicators of balance sheet and income statement respectively, and total assets turnover rate is the link of organic combination of balance sheet and income statement. The financial analysis system formed by the three indicators completely summarizes the financial statements of enterprises. After decomposition, the organizational structure of DuPont analysis system is more reasonable, which is helpful for stakeholders to systematically analyze the development level of enterprises through financial risk management. Through the formula, we can find that the net interest rate of net assets in the traditional DuPont analysis system is an important index that affects the change of net interest rate of equity, which reflects the profitability of enterprises. The equity multiplier reflects the capital structure of an enterprise, indicating the proportion of owner's equity to total assets. The greater the change of equity multiplier, the greater the proportion of liabilities that an enterprise relies on, and the greater the corresponding financial risks. The change range and direction of net interest rate of total assets and equity multiplier will also affect the change degree of net interest rate of equity. 2. Be able to reveal the reasons for changes in financial indicators The traditional DuPont analysis system analyzes the decomposition of each financial index in detail by decomposing the enterprise from the whole to the local layer by layer. Combined with factor analysis method, financial indicators are replaced one by one, and the difference of changes in net interest rate of equity is compared to analyze the impact of each financial indicator on net interest rate of equity. According to the difference of comparison, we can study and analyze the reasons for the change of net interest rate of equity from the following three aspects: First of all, it analyzes the change of net sales interest rate. The net sales interest rate index can also be expanded to sales gross profit margin, sales cost rate, period expense rate and other indicators. If the net sales interest rate increases year by year, it shows that the total cost control of the enterprise is relatively good. On the contrary, we can further analyze the impact of operating costs, period expenses and non-operating income on net interest rate, mainly analyzing whether the subjects affecting net profit and operating income are increasing year on year, or whether their growth rate is less than the actual growth rate, so that enterprise managers can understand the main reasons affecting the net profit of enterprises. Secondly, it analyzes the use efficiency of total assets. In the process of analyzing operational capability, enterprises first understand the ratio of current assets in total assets, and the proportion of inventory and accounts receivable. According to the relatively large accounts, analyze its turnover capacity, such as the inventory account of the enterprise, deeply study the input and output of products, and the accounts receivable account, calculate whether its recovery rate is at a reasonable level, and measure whether the operational capacity of assets is good. Help enterprise managers to evaluate their performance and adjust them according to their shortcomings. Finally, it analyzes the capital structure of enterprises. From the standpoint of enterprises, the increase of liabilities will lead to the increase of financial leverage, but moderate liabilities can make enterprises obtain more benefits. In the traditional DuPont analysis system, it is necessary to understand the most favorable capital structure for enterprises and maintain reasonable financial leverage, so as to maximize the profits of enterprises and control the financial risks reasonably, which is helpful for the sustainable development of enterprises.