Case Study On The Growth Of Homa Electrical Appliance Co. Ltd.

The household electrical appliance company’s actual performance and market expectations can largely determine the rise and fall in the stock market, the importance to the national economy is well known to us all. The objective situation that household electrical appliance industry is turning down in recent years make the research on the growth of household electrical appliance enterprises become very important. The purpose is to evaluate of Chinese household electrical appliance company growth and promote the understanding of Chinese household electrical appliance industry and to provide guidance for the enterprises internal and external stakeholders, including managers, creditors, investors and intermediaries such as securities companies and other interest groups.The thesis had chosen the Homa Electrical Appliance Co. Ltd. as a case analysis of research methods. A suitable analysis system for the company’s home appliance industry enterprise growth has been built through the study on the related growth theory, summing up the relevant growth analysis experience and methods, and considering the company’s household electrical appliance industry’s macroeconomic impact factors. First of all, the thesis has analyzed the balance sheet, cash flow statement, statements of profit and loss of the Homa Electrical Appliance Co. Ltd. to analyze the drivers of the company growth. Second, it has calculated and analyzed the related financial ratios; for example, gross profit margins in the main business income and the main business net profit margin, asset liability ratio, interest coverage ratio, and the reaction of enterprise operating capacity of the turnover rate, followed by the DuPont analysis. On the basis of them, finally, it has made a scientific analysis of the growth ability of Homa Electrical Appliance Co. Ltd. by using growth analysis index total asset growth rate, fixed asset growth rate, the main business income year-on-year growth rate, and net profit growth rate. In the analysis of these aspects of financial indicators, it will refer to the macroeconomic factors which are closely related to the development of the company for the company growth analysis.After the comprehensive analysis of the company growth, the thesis has combined the growth with the present development situation of the company and the industry characteristics. With the existing successful experience at present stage, it put forward some measures from the level of national policy, household appliance industry and the company itself respectively to improve its growth ability.