The Financial Analysis Of Vanke Co.,Ltd

In the market economic environment, it shows obvious economicglobalization trend. The corporation competitions becomes vehemence, themoney market is more and more perfect, and nowadays, the organizationforms and business fields are various, that caused the complexity of businessactions. The financial analysis body should provide the necessary referencebased on the scientific and systemitic analysis. Since financial analysis isintroduced to China, it has experienced a rapid development As for theimprovement made in financial analysis, two currents are concerned, one istheoretic research, the other is empirical research on some listed companies.However, most research being done is not on analysis about some specifiedcompanies, which is called case analysis, but research in the light of generalphenomena. In the last years, some global companies such as Xerox and someChinese listed companies such as Lantian Joint-stock were exposed financialscandals one after another, which shows fully that it is imperative toemphasize the importance of research on financial case analysis.Faced to the grim industry situation and the real estate control policy, theshare price of most listed companies decreases. But as the leader of real estateindustry, Vanke Co.,Ltd shows outstanding financial achievement. Therefore, Iam about to analyze the financial condition of Vanke Co.,Ltd from 1999 to2004 by a series of specific methods and supply with strategies that canresolve the problems existed.First, there is a fully analysis on the three biggest financial statements ofVanke. According to one of them, the balance sheets, we can see the structureand change of Vanke assets and liabilities. Take the assets condition forinstance, the liquid asset holds a bigger rate than the others do in Vanke's totalassets. From 1999 to 2004, its amount of total assets increases quickly, but thereceivables continuously reduce. This reflect the steadiness development foVanke Co.,Ltd. Another example is the condition of liabilities. The mainliability that Vanke takes is short-term liability, till 2004, the long-term holdsthe most rate. The account payable in short-term liability increases quicklyyear after year. Such thing also happens on stockholders'equity, whichincreases continually from 1999 to 2004, and higher than that in TianhongBaoye Co.,Ltd.And it tells us the net assets are increasing its value.Stockholders'equity increases are mainly caused by surplus enhancement.According to the analysis on Vanke's income statement, I find that itschief business revenue presents a increasing trend from 1999 to 2004. Till2004, it has achieved 7,667,226,112.00RMB. As for the sales income, itkeeps a continuous increase. It express the positive augment of main business.According to the analysis on Vanke's cash flow statement, I find that cashreceived from customers and cash payment for are mainly from managingactivities. Approximately, cash received presents a descendant trend and cashpayment for presents the opposite. I think it is concerned with Vanke's cashfrom finance.Second, there is a fully financial analysis on Vanke. Its quick ratio andliquid assets ratio shows normal, asset-liability ratio and equity ratio are in theaverage level in industry. We can see that its debt ability is strong and theinvestment risk is low..To analyze the ability to Vanke's operation, I find that its operation abilityis stable, the index value is near to the industry level, and have better operationability, which can support the development and enlargement of companies.To analyze Vanke's profit ability, I find that there is a increasing trend.Third, there is a comprehensive analysis on Vanke's financial condition.After analyzing the return on net assets, I conclude that the major reasons that...