Financial Analysis Based On Value Chain Perspective

With the current rapid economic development and social progress,the market environment is becoming more and more complex and changeable,and the competition between enterprises is also very fierce.At this time,it is especially important for enterprises to maintain and enhance their own advantages based on the market.In the modern market,financial analysis is generally calculated and analyzed only through indicators such as profitability,operation ability,debt paying ability and development ability.However,this method is more suitable for users of external statements to understand relevant information of enterprises.It is difficult for internal managers to make more effective decisions on specific links and improve the enterprise’s value creation ability.Therefore,if the adverse effects brought by the disadvantages of financial analysis are to be reduced,new methods are needed to measure the performance of enterprises and provide more useful information for internal managers to make decisions.With the progress of science and technology,artificial intelligence is gradually rising in the market,and we human beings will also make continuous progress,otherwise we will be eliminated.Through continuous research,scholars put forward that the combination of value chain and financial analysis can effectively reduce the influence of the disadvantages of traditional financial analysis.Therefore,the combination of financial analysis and value chain is also of great significance.This paper constructs a financial analysis system based on the value chain perspective,combines the value chain with financial analysis,divides the overall production process of the enterprise into different links,and selects relevant data indicators for analysis in different links,which is helpful to discover the value-added links of the enterprise,analyze the advantages and disadvantages of the enterprise,enhance the competitiveness of the enterprise,and improve the value of the enterprise.Therefore,financial analysis based on the value chain perspective has certain practical significance.Taking Gree electric appliance as an example,this paper constructs a financial analysis system based on the value chain.Firstly,it analyzes the overall financial situation of Gree electric appliance.Secondly,it makes financial analysis on different links from the perspective of internal value chain,vertical value chain and horizontal value chain.Finally,the overall financial situation is linked with the financial analysis of each link,finding problems and putting forward reasonable suggestions to help enterprises improve their value creation ability.This paper is divided into five parts:Thefirst part mainly includes the background,significance,main methods and research status at home and abroad.The second part introduces the theoretical basis of the thesis.The third part is the introduction of Gree electric appliance,the overall financial situation and the composition of the company’s value chain.The fourth part is financial analysis based on value chain.The fifth part summarizes the above analysis and puts forward relevant suggestions.Through analysis,this paper draws the following conclusions:Gree electric appliance has advantages in increasing research and development investment 、developing new products and diversified businesses in the production process、inventory turnover speed is relatively fast,etc.Weaknesses are shown in the rising cost of purchasing raw materials、the stock backlog is serious、the relationship with partners is distributed.These advantages and disadvantages have certain influence on Gree electric appliance value increment,so Gree electric appliance should take corresponding measures to improve its value creation ability and enhance its enterprise value.