Zte Financial Analysis Based On Strategic Analysis

Financial accounting,built on the basis of the accounting and the financial reporting information,using s specialized method, evaluates the financial indicators of the company’s profitability,solvency,operating capacity and ability of growth in past and present about a company’activites of financition,operation and investment.And with the reasonable evaluation,the business developping trends can be forecasted reasonably. So it can provide an accurate basis for the investors,creditors,operators and the other people.Along with the globle economic integration and the great diversification of the politics,economics and social environment, the competitions among enterprises were more and more intense. So strategic management became a key for the company’successes and failures. The financial management, as an important part of business management, carry out the activities with the purpose of long-term strategic objectives. Financial analysis,as the basis of financial management, is more and more important. Whether financial activities or strategy formulation, the companies should use the financial analysis data as the important foundation. So how to creat a competitive advantage and improve the Strategic management capacity through financial analysis is Purpose of this article.The article summarized and compared the communications equipment industry of China and overseas using ZTE company as the target and using the Ericsson as the reference. By comparing the two companies,obtained the shortage of ZTE in profitability,solvency and operating capacity.After the above analysis,by the DuPont analysis system,resolved the specific indicators,and pointed out that reasons of them. Finally the financial management practices of enhancing ZTE’ Strategic management capacity was prposed.