Comparative Analysis On Statments Of Gome And Suning

With the ever-developing of merchandise stores, duopolies monopolization patter have established in current household appliance industry. The data revealed that:up to 80% of the market share is enjoying respectively by GuoMei and SuNing companies. Armed with nationalwide market channels, the two tycoons largely employ accounts payable and notes payable to settle up the bills with their suppliers. Trade credit and "OPM" strategies are extremely used. Occupanting suppliers'operating capital through "payment days", they employ these short-term capitals which are periodical and acquired without cost to their routine operating or other purposes with disguised means.This similar financing bring the companies a series of problems and hidden hazards as well as abundant cash flow available, such dangers as:irrational debt structures, high floating debt rate, high tension with their suppliers, restrictive policies from government and so on. So,from the paper's perspective, in order to provide the decision-makers with valuable references, it is necessary that to make a further analysis and research upon their features of financial affairs through finding out the similarities and differences of the two tycoons with a detailed comparative analysis.Firstly, with the purpose to provide foundation of financial statements analysis of the two companies, the paper exert a detailed analysis on our country's household electronical appliance industry and the current situations of the two companies. Secondly, make a introduction and retrospect of theoretical framework and related articles. Sequently, the paper make the systematic analysis and comparation of such financial data, basic financial indexes, financial ratios in the five A/P of the year 2004-2005. It revealed the information behind sorts of indexes, on the basis of disintegration of the revenues, risks, and value-creation of the two companies. Net assets revenues rate represent revenue. With the use of analysis calculations on degree of financial leverage, operating leverage and general leverage, we get the corporation risk. Through disintegrating and comparing the performing of EVA, we get the value-created. Finally, the paper draw the conclusions and provide the suggestions after employed finance matrix and analyzed the current questions of the two companies.