The Financial Analasis Of VGIC Sellers

VGIC has confronted with a serious crisis on sale which it has never met before.Such as slipping competitiveness,dropping down of sale amount and confused automobile sellers.Automobile sellers close their shops every now and then.I worked for PwC as an Internship.During that time,my team served VGIC with financial support and risk assurance.So that,I can analysis its financial situation by referring financial data.This article is based on traditional financial analysis and added with managemental accounting method.Such the article can not only emphasize data on financial statement but also pay more attention to the operation management,getting the key process.The whole analysis cover from profitability,operational efficiency,capital source,utilization of capital to liquidity.According to the seasonal characters in automobile industry,this article take 2016Q1 data as analyzed object,adding 2015Q1-Q4 for contrast.When researching operational efficiency,new vehicles turnover and other KPIs are divided by five sectors around the country.Liquidity analysis obtains the longest time period and the widest cover of data,summing to 13 quarters.Analysis shows that VGIC has largely improved its profitability of new vehicles.By well controlling sale expenses,RoS gradually stepped up and turned to profit in 2016Q1.However,profitability of aftersales and accessories is falling down as well as the part of used car still liggers.Short-time liquidity shows no good,liquidity ratio is still weak and the number of working capital is still negative.In the view of Areas,West exists short-time liquidity risk.Middle Area and South Area exist long-time liquidity risk.The worst is East Area for its serious liquidity risk and weak operational efficiency.This area deserves an strong attention.Finally I build up an P.G.O.L.risk-assessment model to evaluate the risks of all the 98 auto dealers by Score Card.Results show that 5 auto dealers come to the high-risk level and 3 of them are worst which they hold strong inclination to close shops.So VGIC have sufficient reasons to keep an eye on them seriously and frequently...