BYD Company Financial Analysis Based On Harvard Analysis Framework

China's auto industry started late,but after decades of rapid development,a relatively complete auto industry system has been formed.In 2019,the national automobile production and sales were 25.712 million and 25.769 million,respectively,ranking first in the world for 11 consecutive years.The automobile industry has become one of China's economic pillar industries and one of the ten key industries of "Made in China 2025",which plays a vital role in China's economic development.As the energy crisis and air quality problems continue to intensify,people's awareness of energy security and environmental protection continues to increase,and green,low-carbon,and environmentally friendly consumption patterns are becoming popular.In this context,"green water and green mountains is Jinshan Yinshan" has gradually become the development concept of the automobile industry,and the new energy automobile industry is gradually emerging.Therefore,this paper selects BYD,a leader in the new energy vehicle industry,as the research object,analyzes and evaluates its financial situation based on the Harvard analysis framework,finds the deep-seated reasons for the change in financial situation,and then provides decision-making suggestions for corporate management Provide a reference for the development of China's independent car brands.This article is divided into seven parts.The first part mainly summarizes the research background and significance,and combs the research status at home and abroad.The second part is an overview of relevant concepts and theoretical foundations.The third part is a strategic analysis of BYD.First,it introduces the overview of BYD,and then uses the PEST model and SWOT model for strategic analysis.The fourth part is the accounting analysis of BYD.The first is to screen the key accounting policies and accounting subjects and analyze them to determine whether the accounting policies adopted meet the requirements.The fifth part is the financial analysis of BYD.It first analyzes the three major reports from 2014 to 2018,and then compares the financialindicators horizontally and vertically to study the company's strengths and weaknesses.The sixth part is the prospect analysis of BYD,combined with the previous analysis results,to predict BYD's current risks and future development.The seventh part is the evaluation of analysis results and suggestions for future development.Through analysis,it is found that BYD's "7 + 4" strategy is promoting the comprehensive development of new energy vehicles to cope with changes in the global environment.From various aspects of analysis,it can reflect that this development strategy meets the future development needs of enterprises.We are making efforts to actively promote this development strategy.The selection of BYD's accounting policy is more reasonable and consistent with the characteristics of the automotive industry,indicating that the quality of financial information is relatively reliable.In many years of operation,BYD 's capital is not reasonable enough,and its short-term debt solvency is weak,which makes the company 's financial risk high,and the receivables turnover rate and inventory turnover rate are low,which makes the capital utilization efficiency low and the growth ability not strong enough.,The profitability is better,and there is more room for future development.After the conclusions drawn from the above research,four suggestions are proposed for BYD: it is recommended to optimize the capital structure,improve the internal management level,increase R & D investment and talent introduction,broaden the sales channels and improve the after-sales system.