Development Strategy Of Yili Based On Financial Analysis

Financial information is an effective information disclosure tool for enterprises.The financial information system integrates the activities of the enterprise into financial statements,so the analysis of the financial statements can analyze the whole situation of the company and find out the problems and put forward countermeasures.But financial analysis has its own limitations,such as ignoring environmental impacts,ignoring the impact of strategic changes.So based on many scholars’ theory of financial analysis and financial analysis framework,the author combine the traditional financial analysis with Harvard framework of analysis,adjust the analysis model and to apply in Yili co.,LTD.The analysis model is:first,establish the goal of financial analysis,and then analyze the enterprise environment and its strategy,and then financial analysis,at last is comprehensive conclusion.This model is Short for four elements mode.This paper selects Inner Mongolia Yili industrial group co.,LTD.Through collect its financial reports from 2012 to 2016,by analyzing industry environment and the company environment,the competition strategy and corporate strategy,combing with the environment and the strategy of financial analysis,also comparing with the two biggest competitors Mengniu and Bright dairy to analyze the advantages and existing problems of Yili.The author puts forward Suggestions for its future development and provides Suggestions for the development of dairy industry in China.Through analysis,it can be seen that there are six aspects of Yili’s performance,which is consistent with the company’s strategy.Mainly include asset operation ability;The ratio of accounts receivable is much lower than that of competitors,and accounts receivable turnover is high,and the management ability of accounts receivable is higher than that of competitors.The accounts payable is increasing year by year,and higher than the competitors.The advance payment is higher than Mengniu and Bright,which can be seen that Yili is in a relatively strong position in the upstream and downstream dealers and other customers.The control ability of its sales expense,management fee and financial expense is enhanced;The guarantee multiple of EBIT is higher than the competitors,and the long-term financial management efficiency is higher.The financial leverage is decreasing,the financial risk is reduced,the company’s EVA is greater than zero,the company is in the creation stage;Yili is abundant in cash and operating activities are the main source of revenue and profit.The company is in a good state.Analysis also concluded that Yili need promote inventory control,accounts receivable control,R&D investment,debt further optimize equity structure aspect,so that the company’s strategy can be implemented better,reduce the company’s operating risk and financial risk,to meet the opportunities and challenges for a better.