Financial Analysis On Non-government Funded Education

Non-government funded education rose from the 1990s.It has developed largely because of the huge demand of the society.It only took about a few decades to grow from a small private education company to a transnational corporation.However,when it comes to finance,all the companies suffer from policy problems.So,brunches of education companies appeared on the foreign market.Among which,there are good ones such as New Oriental and Tomorrow Advancing Life.But still,some of them delisted by various reasons.The development of these companies is always the core concern of all the researchers and investors.Till now,surveys about non-government funded education companies focus on strategies,marketing and policies other than finance.It could be of great importance to know the state of operation of the companies by their annual reports.On the macro level,I introduce the background of Chinese non-government funded education and the condition of companies that appear in the foreign market,as well as their listing history.I choose 2 leading companies of the non-government funded education,New Oriental and Tomorrow Advancing Life as objects of study.First,I will analyze their business structure and strategy via their different history,direction and business field.Second,I pay attention to their financial statements by analyzing their financial condition,including asserts,debts,revenue and profit microscopically.Third,I analyze the ratio of their financial results to staudy the earning power,cash-making ability,development ability and risk.I will use a 5-year period as observing period.The two companies share similarities such as low debts,high investments and overall arrangement.They also have differences such as investment preference,asserts structure and debts.I will sum up the similarities and differences to speculate the rule of development.It could be good advices for companies,especially those long for listing abroad.For a long time,non-government funded education will boom along with the development of economy.A number of non-government funded education companies will face more tolerant circumstance for financing and more competitive situation.The thesis will provide advice for those ready for listing,especially oversea listing.To some extent,it will enlighten the future development for non-government funded education.