The Research On Analysis Of Financial Statements Of BYD Based On Harvard Analysis Framework

With the global climate deterioration and severe deterioration of air quality,replacing traditional internal combustion engines with new energy vehicles is an inevitable result of the development of the times.BYD is a leader in China's new energy automotive industry.Analysis and research BYD help us understand and predict the status and future of the company and industry.This article will mainly use the Harvard Analysis Framework to analysis BYD and obtain the analysis results to provide valuable information for users of BYD financial statements.The main content of this paper including four parts.The first is the intro,summarizing the basic background and significance of writing,research ideas,basic methods,and literature review.The second part let us know the basic situation and development process of BYD.The third part adopts the Harvard Framework to conduct strategic analysis,financial analysis,accounting analysis,prospect analysis for BYD.Among them,accounting analysis and financial analysis are the most important points.The fourth part finds out the problems of BYD based on the analysis results and proposes improvement measures.The conclusions in this paper are: First,BYD's non-current assets account for a large proportion.This is because BYD's whole vertical integration strategy has led to excessive factories,production lines and a large amount of fixed assets.The industry has a high asset-liability ratio,a large proportion of current liabilities,and excessive bank borrowing.Second,profits have fallen sharply.The company's previous blind expansion,misjudgement of market growth prospects,and overconfidence in its own sales capabilities.Some contradictions hidden during the period of high growth have exploded,resulting in weak sales revenue growth,rising sales costs,and severely declining profits.Third,BYD's asset management efficiency and financial management efficiency are very low.Management fees and financial costs are still high,which is caused by BYD's large bank borrowing and investment in research and development.Finally,the cash flow of business activities and the turnover rate of accounts receivable are low,which leads to the decline of the company's ability to resist risks,which is not conducive to the development of the company.