Analysis Of Similar Financial Pattern On Financial Performance Of HLA

In today's apparel industry,the fierce market competition has made most companies' earnings growth weak and their profits marginal.However,in recent years,Heilan Home Co.,Ltd not only has a gratifying financial index such as main business income and net profit,but also the net asset return rate,equity multiplier and net sales rate of the previous years occupy the first place in apparel enterprises.The study found that Heilan Home Co.,Ltd adopts a financial-like model.By picking up the goods after the downstream dealers first collect the goods,the upstream suppliers first pay for the goods after the raw materials,and they take up the upstream and downstream funds and obtain huge interest-free liabilities.As a result,high financial leverage has been used,and high net asset yields have been achieved,showing strong profitability.A key reason for the outstanding performance of Heilan Home is that it can rely on the strong position of the brand,implement the franchise distribution and credit sales model,build a wide marketing network at a lower cost,and achieve strong control over the channel,thus achieving “financial finance” The business model.Therefore,this paper first reviews and summarizes the relevant theoretical basis and meaning of the financial model.In the case analysis part,first introduce the background of the financial model of Heilan Home Company,and analyze the strategic advantages of the company.Under this preparation,the method of implementing the financial model of Heilan Home is introduced in detail.And analysis-upstream credit purchases and downstream interests bundled operations.Interms of the company's financial performance,it first analyzes its market share and operating status.At the same time,this paper chooses the use of financial models that are negligible for the use of financial models,and the relative use of financial models.DuPont analysis and comparison of the profitability of Heilan family financial model and its five-year financial data.Then,by comparing and analyzing the corresponding data of Heilan Home,Youngor and Metersbonwe in 2013-2017,it reveals that the powerful “financial-like” viability of Heilan Home has created a strong ability to make money and reduced the pressure on working capital demand.And there are huge interest-free liabilities;but at the same time,the huge interest-free liabilities of Heilan Home have formed a high financial leverage.Finally,it points out the problems and risks faced by HlA's family financial model.Although the financial model was first born in the home appliance industry and widely used by large enterprises in the industry,it is rarely heard in other industries.The financial model of Heilan Home has achieved success with the pioneering work,and provides a reference for China's garment enterprises to build a financial model,optimize supply chain management,select investment and financing strategies,and implement risk prevention.