Financial Performance Analysis Of BYD’s Diversification Strategy

Diversification is a strategic choice in the production and operation of an enterprise.At present,the domestic automobile industry is highly competitive in the market,and there is a certain degree of convergence between the industries.The use of diversified operations has become an important way for domestic automobile manufacturers to make breakthroughs.However,diversification has its applicability and degree of applicability.For enterprises,diversification has its advantages and disadvantages.Some diversified businesses achieve leapfrog development,and some fail due to diversification.Therefore,according to this situation,the academic community is also discussing the pros and cons of diversification,how it will affect business operations,and the impact on financial performance,but there is no uniform conclusion.The impact of corporate diversification strategy selection on its growth and development needs further study.To this end,specific analysis needs to be carried out in combination with corporate issues or industry realities,specific issues,and specific situations.Financial indicators are important indicators for an enterprise to evaluate its business development and a series of business decisions.By analyzing its changes and logically examining the relationship,we can see the company’s operating and financial status and development trends.The choice of diversification strategy first affects financial performance.Through financial performance analysis,you can evaluate diversified operations and analyze how it affects financial indicators.This article selects BYD as the research object,starting from the reasons for BYD’s implementation of diversification,and analyzing and evaluating its financial performance based on its diversified business strategy.Based on this,it analyzes the problems existing in BYD’s current diversified operations,and provides BYD with The company finds that issues related to problem-solving and adjustment provide a series of references in order to effectively avoid or control risks brought by diversified operations and maximize the advantages and role of diversification strategies.The thesis is divided into six parts.The first is the discussion of the impact of diversified operations on corporate performance at home and abroad.The second is the related theories of diversified operations,which provide a sufficient theoretical basis for the financial performance analysis of BYD.Subsequently,thebasic situation of the company and the current status of diversified business development are analyzed,the causes are analyzed,and the type and degree of the company’s diversified business are studied.This paper uses a comparative analysis method and a data analysis method,combined with the motivation of the company’s diversified operations,and conducts a longitudinal comparative analysis based on traditional indicators such as debt repayment ability,profitability,development ability,and operating ability,and uses EVA economic value-added to diversify its operations.Qualitative and quantitative analysis of financial performance.In addition,this article innovatively uses the EVA economic value-added multi-index combined with analysis to evaluate its diversified business financial performance from the perspective of enterprise value.According to the results of its analysis,the problems and causes of BYD’s diversified operations were raised.Finally,give constructive suggestions for the problem.Through analysis,it is found that BYD’s diversified operations have played a role in improving financial performance to a certain extent,but far from achieving the expected results.In this paper,five suggestions are given: improving the account receivable management system;optimizing the allocation of capital structure and improving debt repayment ability;optimizing the product mix;improving research and development efficiency,mastering core technologies,and responding to market changes;strengthening internal control management,Reasonably control and reduce costs;the development of diversified strategy should be in line with the actual situation of the enterprise.