Research On BYD’s Financial Analysis Based On Harvard Analysis Framework

Climate change has become a global problem facing mankind.The emission of carbon dioxide in various countries has led to a sharp increase in greenhouse gases,which has threatened human life systems.Countries in the world are currently agreeing to reduce greenhouse gas emissions in the form of a global agreement,and my country has therefore proposed carbon peak and carbon neutral goals.With the development of low-carbon economy,the rapid development of new energy vehicles with the advantages of energy saving and emission reduction has an important impact on my country’s economic development.BYD,as a model of national enterprises in new energy vehicles,has profound value in its research.It can provide reference for BYD’s management,and it can also provide reference for other new energy vehicles to enhance their core competitiveness.This article adopts the financial analysis method of the Harvard Analysis Framework,which helps to break through the traditional financial analysis method,thereby promoting the improvement and development of this analysis method.Based on the definition of related concepts,this article uses the Harvard analysis framework to analyze BYD’s operating and financial conditions.Through the analysis of its strategy,accounting,finance and prospects,it is found that there are mainly the following problems: poor marketing network,small foreign market share,poor brand effect;low inventory turnover rate,large amount of accounts receivable;capital structure Poor,poor operating capability;greater financial risk.On this basis,the following suggestions are made for the future development of BYD: increase sales revenue at home and abroad,strengthen the management of working capital,optimize the capital structure,and strengthen financial risk management.In the long run,the new energy industry will mature and BYD’s cloud track business will also generate profits.However,with the intensified competition and the reduction of state subsidies,BYD will also face great challenges in achieving substantial development.The research conclusions of this paper have two aspects.First,the Harvard analysis framework has great advantages compared with traditional financial analysis methods,and it can conduct financial analysis of enterprises more comprehensively;second,BYD is a company with better growth potential.The company’s core competitiveness is relatively strong,but there are also certain problems in the business process.It is necessary to further increase sales at home and abroad,strengthen the management of working capital,optimize the capital structure,and strengthen financial risk management to achieve better development.