The Financial Analysis Of Byd Company Uder Harvard Frameworks

With the worsening global climate and the poor air quality, and the development of science and technology, it is sure that new energy vehicles will replace the traditional vehicles which consume fossil energy. AS the leader of China’s new energy automotive industry, analyzing BYD is very representative, which will help us understand and predict this industry. This paper will use Harvard Analytical Framework to analyze and provide useful information for users of BYD’s financial statements.This paper composes four parts. The first part is an introduction, which include the research background, world research statuses, related theories and the source of data. The second part will introduce the traditional theories and methods of financial analysis and their defects, the content of Harvard Analytical Framework. The content of the third part includes the basic information and development history of BYD, and the process of using Harvard Analytical Framework to analyze BYD. Based on the previous analysis, the last part will predict the future of BYD and give some reasonable advices. The conclusion of the paper is that BYD conforms to the times and is outstanding company, and has great space to grow in the future. But BYD also needs to reduce financial leverage, improves the designing, manufacturing processes and upgrades technology to enhance market share of middle class and get rid of traditional impress that BYD represent low product.