Financial Analysis And Diagnosis For DH Corp

DH Corp is a manufacturers producing video surveillance. This article is focused onanalyzing the last five year (from2007to2011) financial statement of DH Corp, to find out:Firstly for managers, guiding the company strategies, providing decision-making reference,and improving rational decision-making. Secondly for the shareholders and investmentinstitutions, providing investment basis. Thirdly for the company, diagnosing business risks,and mining operating potential.The main technical methods and research route are: at first, the use of trend analysis andstructure analysis method to analyze the DH company’s financial condition in the last fiveyears. Next, the use of ratio analysis of the DH’s current financial situation (according toprofitability, risk, and growth) for preliminary judgment. Then, the use of radar chart analysis,finding the comparison between the DH and the industry average growth from the view ofsecurity, liquidity and profitability. What’s more, the DuPont financial analysis to identify thegap between the DH and other outstanding industry enterprises Haikang company, derivingthe factors that affect corporate profitability. In additiont, using serial substitution quantitativeanalysis to make further research of affecting the direction and degree of changes in equitycapital rate of return. Last but not the least, analyzing the DH’s financial situation frommultiple perspectives, finding what company need to refine and improve, thus the DH’sexecutives should pay attention and take measures, as well as a reference for stakeholders’decision-making.