Research About Financial Analysis Of Pangda Group

With the rapid development of China’s economy and improvement in people’s living standards, automobiles have become an indispensable part of daily necessities in people’s family life. In recent years, the sales of automobiles have been on a steady increase. As the leading automobile distributor in the current market, Pangda Automobile Trade Co. Ltd. has attracted much attention of the public. The company owns various 4S shops in many provinces all over the country, and several automobile sales companies with the market value over tens of billions. The automobile sales of Pangda company have taken up a large proportion of the market share and been in the leading position in the domestic market. Consequently, the company exerts a profound influence on the development of the automobile sales industry in China.To conduct a more accurate and deep analysis on Pangda company, the present thesis applies relevant theories, figures and tables to the analysis of the company’s financial statues on the basis of the financial data released by Pangda between 2009 and 2012. To be specific, the thesis studies Pangda’s financial statues from the systematic analysis of several important indexes including development ability, cash creation ability, risk management ability, profitability, solvency, and operation ability first. Secondly, the thesis applies strategic analysis and DuPont analysis system to conduct an in-depth study into Pangda’s ROE and financial strategies with the purpose of unraveling the deeper causes for the change between years in comparison. The ultimate purpose of this research is to pin down the strengths and weaknesses of Pangda in these aspects, so as to provide a useful reference for the company administrator, stakeholders, investors, users of financial statements, and researchers in the automobile industry.This study yields the following results: Pangda Automobile Trade Co. Ltd. is relatively weak in risk management ability, profitability, development ability, and operation ability, but is stronger in cash creation ability, which is above the average in the industry. However, the above indexes have been on a decrease in recent years. In addition, the DuPont system and financial strategic analysis also reveal that the company is weak in its cost management and operation management abilities.