BYD Company Financial Analysis Based On Harvard Analysis Framework

Our automobile industry started relatively late.After decades of development,China’s traditional fuel vehicle technology and production quality have been continuously improved,and gradually formed a complete automobile industry system.In recent years,with the development of new energy vehicles,due to the advantages of friendly environment,high efficiency and energy saving,excellent driving performance and intelligent control,new energy vehicles have gradually won the favor of consumers,which has become the inevitable direction of future automobile development.The development of new energy automobile industry is in the ascendant,many companies have made some achievements in the field of new energy automobile,but there is still a big gap between China’s automobile technology and foreign countries.As the leader of new energy vehicles in China,BYD represents the development level and development trend of China’s new energy industry.Whether the company can develop continuously and with high quality and improve the overall development level of China’s industry is a common concern.Therefore,it is necessary to fully understand the financial situation of BYD and predict its development prospects.At present,the financial analysis of new energy vehicle companies in China is mainly based on the traditional financial analysis method,that is to analyze the company’s solvency,profitability,operation ability and development ability through financial data.But the traditional financial analysis method has obvious limitations,ignoring the non-financial data and qualitative aspects,which leads to the company analysis is not comprehensive enough to meet the requirements of modernization,so this thesis will take the Harvard Analysis Framework for financial analysis,and combine the financial and non-financial data organically,so as to find the company’s shortcomings and defects and put forward relevant suggestions.This thesis is divided into five chapters.The first chapter is the introduction,which mainly introduces the research background and significance,content and methods,literature review and innovation;The second chapter explains the related theories;The third chapter gives a general introduction to BYD Company to understand its main business and basic financial situation;The fourth chapter is the key chapter of this thesis,which is the practical application of Harvard analytical framework.This chapter is divided into four sections.The strategic analysis part analyzes the financial strategy of the company,and then uses SWOT analysis and PEST analysis;Accounting analysis identifies key accounting subjects and analyzes their accounting policies and accounting estimates;Financial analysis is divided into financial statement level analysis and related financial indicators analysis;The final prospect analysis combines the previous part of the analysis results for risk prediction,and forecasts the development prospects of the industry as a whole and the company itself.The fifth chapter makes a summary of the previous analysis,and puts forward some suggestions and Countermeasures for the company.Through the research,we find that BYD Company has problems in accounts receivable and inventory management,solvency and so on.This thesis also puts forward suggestions for different problems,and makes prospects.