Research On The Financial Model Of H Company And Its Influence On Profitability

In recent years,the competition in the home appliance market has intensified,and if you want to stand out in this war,you need the home appliance enterprises to have strong competitiveness.An enterprise must rely on strong capital flow if it wants to grow and develop.Compared with the traditional way of financing,home appliance enterprises tend to finance in similar financial mode.Because financing methods,such as bank loans and stock issuance,require enterprises to pay too high a cost,which affects the final profits.The quasi-financial model is to take advantage of the business credit and strong brand influence of the enterprise,occupy the upstream and downstream funds of the supply chain,form interest-free liabilities,and use these funds to relieve the pressure of working capital,thus bringing positive promotion effect to the profitability of the enterprise.However,similar financial model will also bring some problems and potential risks to enterprises.Once the application is unreasonable,a large amount of funds of upstream and downstream enterprises will be occupied for a long time,which may lead to the breakdown of win-win cooperation with upstream and downstream suppliers and distributors in the supply chain,and then lead to a series of risks such as poor repayment of funds and even broken capital chain.Taking H company as an example,this paper analyzes the financial statement data of H company in recent five years,and analyzes the impact of financial model on the profitability of H company by using comprehensive financial indicators.It not only makes a vertical comparison of the financial data of H company,but also makes a horizontal comparison with its counterparts Gree Electric Appliances and Haier Zhijia,in order to achieve a comprehensive and specific analysis.Then find out the problems and potential risks brought by the quasi-financial model to H company.Then,according to the industry background and industry characteristics,specific suggestions are given,hoping to minimize the negative impact of H company financial model.Firstly,this paper combs the related research trends of domestic and foreign scholars on quasi-financial model,including the concept,characteristics and risks of quasi-financial model.Secondly,it summarizes the related explanation,operation mechanism,potential risks and related theoretical basis of financial model.After that,through the comparative analysis of the financial indicators of H company and their peers,this paper expounds the operation status of H company.Then,by summarizing how H company use the financial model to influence the profitability step by step,it analyzes the positive promotion and negative impact of the financial model on the profitability of enterprises.Finally,according to the problems and risks existing in the financial model of H company,specific suggestions are given according to the industry background.Give some enlightenment to the enterprises that want to use the similar financial model to finance in the household appliance industry.