Application of the Du Pont System in Judging of the Financial Affairs State

The Du Pont System is a method which uses internal relations of financial rates to analyze and judge of financial affairs state of a company. We judge of the financial affairs state of a listed electrical-home-appliances company By Du Pont System, and lead to a conclusion. The purpose of the paper is to introduce the Du Pont System analyses technique to investor,so that they can make correct decision when selecting stock to invest.