Analysis On The Impact Of Similar Financial Model On The Profitability And Risk Of Home Appliance Industry

Nowadays,the competition in the household appliance industry is becoming increasingly fierce,and most of the household appliance manufacturers are facing sluggish profit growth.However,in recent years,gree electric appliances has developed itself in the household appliance industry,maintaining a high level of development in both business performance and social reputation,and its profitability has always been ahead of its competitors in the same industry.Study found that gree electric appliances for successful use of the financial model is the key to its success factors,refers to the financial model,enterprise through to the downstream distributors to receive payment for first shipment,upstream suppliers sourcing raw materials before payment way,take up upstream and downstream capital at the same time,won a large number of interestfree liabilities,forming a high financial leverage,won a high return on equity,showed a strong profitability.The financial model of gree electric appliances is built on the basis of its unique joint-stock regional distribution model,which USES low cost to build a wide and effective marketing network and realize strong control over it,showing the huge advantages of the financial model.This paper firstly sorts out and summarizes the relevant theoretical basis and meaning of the quasi-financial model,introduces the development and operation status of gree electric appliances,and conducts dupont analysis and comparison of its profitability and overall financial performance with its competitors.Then from the "joint-stock regional distribution model" of gree electric appliances,the operation mechanism of the financial model of gree electric appliances is introduced.Then,the influence of gree electric appliances financial model on profitability is analyzed: 1.Through the comparison of operating income scale and structure,it is found that the "joint-stock regional distribution" model has a positive impact on income;2.By comparing and analyzing the payable projects/operating income,prepaid accounts/operating income of gree electric appliances,midea electric appliances,Qingdao haier,gome electric appliances and suning electric appliances from 2013 to 2017,it is revealed that gree’s strong "quasi-financial" viability has greatly increased interest-free liabilities and increased financial leverage;3.By comparing and analyzing the working capital demand of white appliances on behalf of enterprises,it is pointed out that gree electric appliances’ strong cash occupying ability reduces the working capital demand pressure;4.Through the comparison of roe,we can see the influence of interest-free liabilities on the level of profitability.Finally,it points out the influence of gree electric appliances’ financial model on the risk level,including: 1.Business model risk;2.Capital repayment risk;3 risk of capital chain rupture.It provides a reference for Chinese household appliance enterprises to construct the financial model,optimize supply chain management,select investment and financing strategies,and implement risk prevention.