Financial Comparison Analysis Research Of Pangda Group,Yaxia Auto Company And Zhong Sheng Group

Over the past few years, with the high-speed development of China’s economy, the car has entered into thousands of families as a household necessity of many families. The car sales increase annually, which are a huge amount in recent years. Pangda Group, Yaxia Auto Company and Zhongsheng Group, as three listed companies of car sales industry, have attracted many attention from the public.Pangda Group, Yaxia Auto Company and Zhongsheng Group, as typical representatives of well-known car dealers in China, developed rapidly in recent years, all of which have become large car sales enterprises with market capitalization of over$10billion at present. They all set up their own4S stores in a variety of cities and provinces around the country, which occupy a certain market share in the domestic market. It is expected that the auto sales will rise in the coming years, which means that every move of the three companies will have a profound impact on China’s auto sales industry in the future.In order to study the three companies accurately, the paper collects the financial data from2009to2012which were publicly disclosed by Pangda Group, Yaxia Auto Company and Zhongsheng Group. With the relevant theories and charts of financial comparative analysis, the paper firstly conducts comparative analysis of each financial index such as the aspects of the three companies’risk control capability, profitability capability, assets operation capability, debt paying ability and development ability. Then, it uses the DuPont analysis system to conduct the decomposition and analysis of the deep-seated causes of the change in the comparison year of the three companies fully diluted ROE. Through the above comparison and analysis, the paper aims to identify the strengths and weaknesses of the three companies, hoping to provide valuable consult for the researchers of car sales industry as well as provide useful reference for the financial analysis of other companies and the improve of traditional financial analysis methods.The paper concludes that Pangda Group is basically weaker than Yaxia Auto Company and Zhongsheng Group in terms of profitability, asset operations, solvency capability, development capacity and risk control capability through comparative analysis. Furthermore, each item shows that the above financial indicators have decreased at varying degrees, and the decreasing range is rather large, especially in2011and2012, which was more obvious. In addition, the fluctuation range of net operating cash flows in the comparison year is rather large, and the stability is poor, which shows that Pangda Group has a rather weak control capability of cash. While through the study of the DuPont analysis, it reflecs Pangda Group also has the problem of rather low assets operation capability.Through analysis, it shows that Yaxia Auto Company’s overall profitability, assets consolidated operating conditions, short-term and long-term comprehensive integrated solvency, comprehensive development capability are all stronger than Pangda Group, and its assets consolidated operating conditions are stronger than Zhongsheng Group, short-term and long-term comprehensive integrated solvency were both stronger than Zhongsheng Group in2011and2012. And the index reflecting the above capabilities fluctuated largely from2009to2012. Although its assets consolidated operating capability is stronger than Pangda Group and Zhongsheng Group, as the financial index of reflecting this capability decline s year by year, this advantage is increasingly not noticeable. Although its ability to control operating risks and financial risks is better than Pangda Group, yet weaker than Zhongsheng Group. Besides, the fluctuation range of operating cash flow nets in the comparison year is rather large, and the stability is poor, even though a little bit better and Pangda Group, it is still cannot be ignored as its control capability of cash is rather weak. Through the study of DuPont analysis, it shows that the operational capability of Yaxia Auto Company is declining year by year, although a little bit better than Pangda Group, the problem of low asset operational capability can still not be ignored.Through analysis, it shows that Zhongsheng Group’s overall profitability, assets consolidated operating conditions, short-term and long-term comprehensive integrated solvency, comprehensive development capability are all stronger than Pangda Group, while its assets consolidated operating conditions are weaker than Yaxia Auto Company, short-term and long-term comprehensive integrated solvency were both weaker than Yaxia Auto Company in2011and2012. And the index reflecting the above capabilities fluctuated largely from2009to2012, especially in2011and2012, most financial indexes declined obviously. Although its control capability of operational risk and financial risk is better than Pangda Group and Yaxia Auto Company, it is still not ideal. Besides, the fluctuation range of operating cash flow nets in the comparison year is rather large, and the stability is poor. Even though it is a little bit better than the other two companies, but its control capability of cash is still rather weak, which cannot be ignored. Through the study of DuPont analysis, it shows that the operational capability of Zhongsheng Group is declining year by year, although it is a little bit better than Pangda Group and Yaxia Auto Company, the phenomenon can still not be ignored.