| This paper chooses First Auto Works Car Co.,Ltd(FAW Car)and Guangzhou Automobile Group Co.,Ltd(GAC Group)as the research objects,using the financial statements of the two companies from 2013 to 2016,collecting the auto industry data of the national bureau of statistics.Relevant methods and theoretical analysis are used to analyze the capacity on profits,value creation,cash creation,risk control and growth of the two companies;and it also explains the reasons for equity changes using the Du Pont Analysis System to find out the essence behind the various phenomena,as well as the gap compared with industry level.It is hoped to provide some reference for the related financial management personnel,company managers,auto industry leaders,all the stakeholders,and potential investors,the researchers through comparative analysis in this article.In addition,it is expected that this article can be used to analyze the financial strategies and analysis of other companies.Through the above analysis,the conclusion is that the financial indicators of FAW Car in profitability,value creation ability,cash creation ability,growth ability are lower than those of GAC Group and industry average level;Meanwhile,its ability in controlling management risk and financial risk is also lower than that of GAC Group.In addition,the cash flow stability of FAW Car is poor,and it can also be found that both the sales ability and asset operation ability are poor through Du Pong Analysis System.But all the indexes of GAC Group are higher than those of FAW Car,and are on the rise,thanks to the enterprise's paying attention to research and development of new products.The explosive growth of its own brands welcomed by consumers expands sales and grabs more market shares.And GAC Group has a complete automobile industry chain and financial service business such as finance,loans,insurance and so on which are related to product trade service,spare parts,logistics,maintenance,and even in terms of equity investments and real estate investment it has also made a lot of benefits,which expands market shares for the enterprise and improves the sales ability and profitability of the enterprise.But the net profit and net cash flow of GAC Group are not matched,and cash is not strong enough to support its net profit.The cash generated by GAC Group itself is not enough to sustain itssales growth.From the Du Pont Analysis System,it can also be seen that the enterprise production cost is higher,and the utilization rate and creation rate of borrowed funds through financial activities need to be further improved.From the concern and comparative research on these two enterprises caused by the pheonomenon products of FAW Car and GAC Group,some thoughts for the auto industry are caused in this paper: hoping the enterprises' shifting from concept;carrying out the stratagies of increasing income and reducing expenditure,determining the development direction,establishing enterprise culture,better to strengthen the sustainable development of society and improve the well-being of the people. |
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