DOI: 10.36347/sjebm.2019.v06i11.001

Pages: 517-526

Corporate profitability is closely geared to its operating activities, but existing research usually start from a financial perspective or single factor. Based on the main operating activities of online travel agency, this paper explores the relationship between influential factors and profitability by taking Ctrip as an example. We rank the influential factors as fellow though the unitary regression and find that sales expense to operating revenue ratio, management expenses to operating income ratio are the largest, followed by the M&A integration performance, then the accounts receivable turnover, total asset turnover and current asset turnover are the smallest. Assets liabilities ratio, current liabilities to total liabilities ratio and operating income ratio also impacts on the profitability while other factors remain unchanged. Ctrip incurred declining profitability from 2012 to 2016 because of poor marketing ability, decline integration ability, irrational capital structure and cash flow management. Finally, we propose some suggestions in the management according to the analysis.