Research On The Impact Of Financial Model Of Corporate Profitability

With the intensification of market competition in the home appliance industry,the profit growth of most manufacturing enterprises is stagnant and the profit is low,therefore the prospect of the enterprise is not optimistic.Class financial model take the money of upstream and downstream through taking payment after delivery in advance and pick up the goods first by deferred payment,to obtain huge interest-free liabilities,high financial leverage,get high return on net assets and profit space.Its emergence has provided a new financing mode for enterprises.Midea group as the white leading members of the industry which develops well in recent years,relying on the strength of the brand position,carrying out a unique mode of the regional agents,Midea builds a large marketing network with low cost,so as to realize the strong control of channels and give play to the powerful advantages of the financial model.This article reviews and summarizes the related theoretical basis and meaning of the class financial model,the company of Midea group,the situation of operating and financial characteristics and the application of financial mode are introduced,and use the Dupont analysis to compare Midea group and its competitive enterprise in profitability and financial performance.Then the article discusses the operation mechanism of the class financial model of Midea from the regional agent mode of midea group.By comparing the projects such as coping and withholding from 2013 to 2017 among Midea group,Gree,Qingdao Haier,Gome and Suning,the article analyzes the great influence of the financial model of Midea group on profitability.Finally,while enjoying the great benefits of the financial model,Midea also faced with various problems and risks inevitably.The article puts forward the corresponding measures to prevent risks,it provides some references for the construction of class financing model,optimization of supply chain management,investment and financing strategy balance and risk prevention in China's household appliance industry.