Study On The Analysis Of Yili Group’s Financial

Although it has a late and low starting, China’s dairy industry is developingrapidly now. In the past decade, it had gotten an explosive development under thestimulation of China’s GDP speedy growth and the soaring foreign trade volume. Upto the end of June2013, our country has652dairy enterprises with or above scaleincluding389liquid milk producers and209milk powder producers. Among them,there is a host of big and powerful companies represented by Yili Industrial Group,Bright Diray etc. Moreover, most of the representative dairy enterprises are starting tostep into the capital market and catch up with the international first-rate firms. Thedevelopment history of Yili Industrial Group can be the miniature of our country’sdairy industry development，which is from weak to strong and from small to large. Inthe early1950s, Yili Industrial Group just was a “Huimin District cooperative milkmarket in Hohhot City”, which consisted of less than100cattle raisers. Now it hasdeveloped into the critically important leader in this industry of China. In the near50years, the legendary development history of Yili Industrial Group not only is a flag ofChina’s dairy industry, but also initiated and guided the “golden decade” of thisindustry. What’s more, Yili Industrial Group put China’s dairy industry into the worldstage through the Beijing Olympics and Shanghai World Expo. Therefore, it issignificant in this paper to study the financial analysis of the Inner Mongolia YiliIndustrial Group Co., Ltd--the leader enterprise of China’s dairy industry. And themain contents and research results are summarized as below:In accordance with the enterprise financial analysis theory, on the one hand,this paper uses AHP to analyze the financial condition of Yili Industrial Group during2007-2012with vertical comparative analysis and study from four aspects：debtpaying ability，profitability，operation capacity，growth ability. When analyzing thecomprehensive financial indexes in this part, it adopts Satty’s9scaling method tobuild the Satty judgment matrixes corresponding with these four aspects in the help ofAHP. Then, it finds out the relative weights of each index and give them hierarchicalorder. After that, it conducts the consistency check. Finally, it will synthetically analyze and evaluate the vertical financial condition of Yili Industrial Group during2007-2012with the final result getting from AHP analysis. On the other hand, itanalyzes the financial condition of Yili Industrial Group horizontally by using thefactor analysis theory. Firstly, it divides the whole evaluation indexes system into debtpaying ability，profitability，operation capacity and growth ability and then select11indexes aiming at these four aspects to build the indexes system which can measurethe level in the same industry of Yili Industrial Group financial condition. Finally, ituses SPSS software to process the data and get the final result and thereby finish thehorizontal analysis of Yili Industrial Group.In this paper, it avoids the one sidedness because of the signal method and signalpoint on studying questions by respectively conducting the vertical and horizontalanalysis of Yili Industrial Group. Thus it provides a comparatively objective andimperial reference for the study of Yili Industrial Group and its peers’ financialanalysis. Meanwhile, it also can provide some valuable information for theadministrators in the related business and the investors.