| In a period of rapid growth of China’s economy, electricity is the vanguard of economicdevelopment, only electricity demand adapt to the economic growth in order to continue tomaintain a stable strong momentum of development. With our country puts efforts to build onUHV power grid, power generation, transmission and distribution equipment industry trendsshowing a steady and rapid development. TEBA company as a leading enterprise in theelectricity power equipment industry, it has a good growth. In2012TEBA total assets reachedmore than420millions and in the new materials, new energy field are showing the rapiddevelopment momentum. The company continues to expand the scale and opening up newmarkets to earn money while also facing operational risk, the financial data can reflect thecompany’s realistic operating conditions. Based on the TBEA relevant financial data, in thispaper we use the financial analysis and diagnosis, and be fully aware of the untappedresources in the enterprise, to found TEBA deficiencies in the actual business and the realcause of the enterprise financial situation, and proposed to countermeasures of improveoperations in order to the company can obtain long-term competitive advantage.In this paper, we analyze and interpret the financial statements of TEBA in nearly5years(2008-2012), by the use of trend analysis and structural analysis to understand thecompany’s financial situation and the company’s financial development in recent years; by useof radar chart to compare and analyze the enterprise with China XD which an excellententerprise in Electricity Power Equipment industry and to found out the factors that affect theprofitability of the company; by the use of DuPont analysis to identify the causes of gapbetween TEBA and industry average; and use further analysis to found the influence degree ofeach factor on the rate of return on equity capital.By TBEA financial ananlysis and operating diagnose, we found TEBA is in the stage ofvalue creation and it keeps a good growth. For operating problems faced in the developmentprocess, the main business recommendations in this article are as follows: Firstly, thecompany should further strengthen the profitablility of business activities by strengtheningquality management and cost control, inprove equipment utilization and other means, throughestablish the enterprise inventory internal control system and inventory adjustment to reducethe backlog inventory of enterprise; Secondly, by expanding scales channels, reduce inventoryand costs and other ways to enhance the operation and management of assets and to take amore reasonable investment, enhance the profitability of the investment activity. Thirdly,expand the asset-liability ratio moderately, to adapt to the expanding company’s overallstrategy and increase investment in science and technology research. Improve value-addedproducts and upgrade the core, explore effiective production combining research and developnew product with information technology integration, cultivate new profit growth point andimprove business development capabilities continuously. |
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