Market Analysis: The Strongest And Worst Profitability Of Clothing Enterprises

The profitability of an enterprise refers to the ability of an enterprise to obtain profits, also known as the capital or capital appreciation ability of an enterprise. It usually shows the amount of enterprise income and its level in a certain period of time. For operators, through the analysis of profitability, we can find the problems in the operation and management. The analysis of the company's profitability is a deep analysis of the company's market rate. This paper is the men's wear article of the profitability series. A total of 20 men's clothing listed companies are selected as research samples.

Core data:

Top three enterprises in profitability: China LiLang, Jinlilai group and Hailan home

Top three enterprises with average roe: Hailan home, carbine and China LiLang

Top three enterprises with average return on total assets: China LiLang, Hailan home and carbine

Top three enterprises with average gross profit rate: China apparel holdings, libon and Changxing International

Top three enterprises with average net interest rate: Youngor, China LiLang and Jinlilai group

Return on net assets

It is the percentage of net and average shareholders' equity, the percentage ratio obtained by dividing the company's net assets after tax, and is an important financial indicator to measure the efficiency of shareholders' funds. This index reflects the income level of shareholders' equity, and is used to measure the efficiency of using its own capital.

The higher the index value, the higher the return of investment. This index reflects the ability of self owned capital to obtain net income. Generally speaking, the increase of liabilities will lead to the increase of return on net assets.

From the return on net assets in the past five years, the average return on equity of 14 enterprises is positive, among which, Hailan home, carbin, China LiLang, Shanshan brand, Youngor, Nanshan Zhishang and other 6 enterprises are above 10%.

Hailan house has the highest average value in five years, with an average return on equity of 32.06%. In the past five years, the highest roe was 40.02% in 2015 and the lowest was 24.44% in 2019.

The average return on net assets of the remaining six enterprises were all negative, of which, Changxing international, modern Avenue and Muchang Group Holdings declined by more than double digits.

The five-year average value of Muchang Group Holdings is the lowest, with the average return on equity of - 86.57%. The highest roe of the past five years was 159.65% in 2017 and the lowest was - 581.59% in 2018.

Return on total assets

It is another index to measure the profitability of enterprises, which embodies the relationship between the efficiency of asset utilization and the effect of capital utilization. The rate of return on total assets directly reflects the competitive strength and development ability of the company, and is also an important basis for deciding whether the company should borrow money or not.

When the return on total assets and return on net assets (net / shareholders' equity × 100%) are analyzed together, the risk degree of the company's operation can be explained according to the difference between the two.

In terms of the return on total assets in the past five years, the average return on total assets of 16 enterprises is positive, of which 4 enterprises, including China LiLang, Hailan home, carbine and mushang group, are more than 10%.

China LiLang has the highest five-year average, with an average return on total assets of 15.54%. In the past five years, the highest return on total assets was 18.30% in 2018 and the lowest was 12.01% in 2016.

The average return on total assets of the remaining four enterprises is negative, of which the average return on total assets of modern Avenue is the lowest in five years, with the average return on total assets of - 13.08%. The highest return on total assets in the past five years is 3.66% in 2017 and the lowest is - 57.28% in 2019.

Gross profit margin

Is the percentage of gross profit to sales revenue (or operating income), where gross profit is the difference between revenue and operating costs corresponding to revenue.

From the perspective of composition, gross profit is the difference between revenue and operating costs, but in fact, this understanding turns the concept of gross profit rate upside down. In fact, gross profit rate reflects the value-added part of a commodity after its internal system is transformed into production.

From the perspective of gross profit margin in recent five years, the average gross profit margin of 8 enterprises is more than 50%. Among them, the average gross profit rate of China clothing holdings is the highest in five years, with the average gross profit rate reaching 70.14%. The highest gross profit rate in the past five years is 77.92% in 2019 and the lowest is 62.91% in 2016.

Hongdou shares is an enterprise with an average gross profit margin of less than 30%, with an average gross margin of 26.21%. In the past five years, the highest gross profit margin was 30.53% in 2019 and the lowest was 22.96% in 2016.

Net interest rate

Is the percentage of the net sales revenue, refers to the comparative relationship between the net sales revenue and the sales revenue of the enterprise, which is used to measure the enterprise's ability to obtain the sales revenue in a certain period of time.

This indicator reflects the net amount of RMB per yuan of sales revenue and represents the income level of sales revenue. Through the analysis of the rise and fall of the net profit rate of sales, we can urge enterprises to pay attention to the improvement of business management and profit level while expanding sales.

From the perspective of net interest rate in the past five years, the average net interest rate of 14 enterprises is positive, among which, Youngor, China LiLang, Jinlilai group, Hailan house, jiumuwang, carbin, septenaeus, georgebey, and mushang group hold more than 10%.

Youngor has the highest five-year average, with an average net interest rate of 25.57%. In the past five years, the highest net interest rate was 38.18% in 2018 and the lowest was 2.99% in 2017.

The net interest rates of the remaining five enterprises were all negative, and four enterprises, including BUSEN shares, hudu, lippon and Changxing international, declined by more than double digits.

Changxing international has the lowest five-year average, with an average net interest rate of - 29.13%. In the past five years, the highest net interest rate was - 16.74% in 2015 and the lowest was - 41.43% in 2017.