The Analysis Of The Financial Statement Of GOME Electrical Appliances Based On Enterprise Value

With the economic development in the globe, the number of listedcorporations is increased. At the meantime, the operators/owners of thecorporation and other stakeholders require an overall understanding to theoperation competency, earning capacity and liquidity of the corporation in orderto know the related information and make good decisions. Financial statementanalysis system is generated to meet these requirements. Analyzing the financialstatement can also predict the future earning capacity and the risk level ofcorporation, which is exactly the value of the corporation. Hence, revealing thevalue of the corporation through the financial statement analysis can allow thestakeholders to make decisions according to the result of the evaluation, which isanother important perspective of financial statement analysis.The meaning of value evaluation is to help investors and managementauthority to make the decisions. This paper analyzes the financial statement ofGome Electrical Appliances from the view of corporation value, mainlyintroduces the overview of Gome Electrical Appliances and the industry, explainsthe relationship between the financial statement analysis and the corporationvalue, analyzes the financial statement to evaluate the value of corporation as thegoal, and figures out how to make the decisions according to the result ofevaluation. First, this paper introduces the research background, the researchsignificance, the current status, the research content and the technologicalmethod. Second, the overview of Gome Electrical Appliances is described.Besides, the home appliance chain industry Gome Electrical Appliances is in isanalyzed. Also, competitive strategy and corporation strategy are analyzed aswell. Then the relationship between corporation value and the financial statementanalysis is illustrated and the financial statement is analyzed to evaluate the valueof Gome Electrical Appliances. Finally, the result of analysis is concluded which is applied to make decisions in finance and operation for investors and creditors.