Financial Analysis And Countermeasures Of Midea Group Co.Ltd.

Midea Group Co.Ltd.since the market's financial position,operating results,there is no capacity for sustainable development,production management and financial management problems are related to the interests of Midea Group Co.Ltd.and potential investors,regulators are very concerned about the problem.This paper is based on their own work practice and observation,from 2003 to 2015 financial statements by combing Guangdong Midea Group Co.Ltd.,using the structural analysis method,ratio analysis,trend analysis and DuPont analysis,Arman Z analysis of Midea Group Co.Ltd.'s solvency,operating capacity,profitability,cost,cash flow and development capacity,financial early-warning ability and other financial data are analyzed,found the existing problems and put forward corresponding countermeasures,to provide decision-making basis for stakeholders.Through the research,the main conclusions are as follows.(1)The total assets of the Midea Group Co.Ltd.is better,long-term liabilities and current liabilities are maintained at a moderate level,the financial situation is optimistic.U.S.group net profit growth rate is much higher than the growth rate of operating profit,the future development of space is very large.Company's cash inflows sound,operating in a small speculative,the amount of cash outflow can be used in low proportion,accumulation ability is not strong,but there is a certain improvement.(2)The indicators of short-term and long-term solvency of Midea Group Co.Ltd.had good performance in recent years,the solvency has been significantly improved;operation ability is generally good,but there are defects continue to reduce liquidity,slow the rate of total asset turnover ratio and liquidity asset turnover;profitability in recent years more and more strong,but the cost grew rapidly,there are some financial risks;growth ability,good prospects for future development.DuPont analysis results showed that the decrease of Midea Group total asset turnover,the efficiency of the assets is relatively low;the value of Arman Z analysis results show that the group of the Midea in recent years,the financial risk management achievements,enterprise financial risk does not exist.(3)Midea Group Co.Ltd.in the rate of return on net assets,rate of return on total assets,nine indicators of accounts receivable turnover,inventory turnover rate,the interest earned ratio,quick ratio,asset growth ratio,main business profit growth rate,capital accumulation rate is higher than the industry average household appliances manufacturing the level of asset liability ratio and the average level of the industry basically unchanged,but in recent years the total asset turnover and annual sales profit margins are lower than the industry average,reflecting the Midea Group in the sales capacity is short.(4)Midea Group Co.Ltd.there are five major problems in the financial performance,a total asset turnover decline,sales ability is weak;the two is the sales profit rate is low,the high cost of sales;three is the current asset turnover rate is low,the efficiency of the assets is low;the four is the main performance is not outstanding,the growth of enterprises to reduce the five is the management fee rate;high management level decreased.The main reasons are too long distribution channels,product homogeneity is serious,the expansion of the scale of assets is slow,the internal control mechanism is not perfect,to meet the higher wages of workers five aspects.Proposed to build a flat channel,increase product re efforts to accelerate the pace of asset expansion,improve the internal control mechanism,to speed up the pace of the five aspects of the development of intelligent response recommendations.