Title: A Study of BYD’s Profitability Based on DuPont Analysis
Author: Wang Mengli
Advisor: Dr. Ma Yu
Degree: Master of Business Administration
Major: Financial Accounting Management
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: The 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” 14-16 November 2024 (pp.681-693) Click PDF
Abstract
As an important basis for enterprise operation and development, profit maximization is an important driving force for enterprises to carry out business activities and to accomplish strategic goals. In the macro-environment of fierce competition, enterprises need to maintain long-term profitability in order to achieve long-term and stable development. Before the 21st century, the method of analyzing the profitability of enterprises is relatively single, and it is difficult to carry out a comprehensive and integrated examination and planning of the profitability of enterprises. As one of the world’s leading manufacturers of new energy vehicles, Build you Dream (BYD)’s profitability remains stable and growth-oriented, and continues to lead in the industry competition. It helps managers to make objective decisions on corporate development strategies, and investors to evaluate corporate performance and make correct investment choices.
In order to explore how to improve the profitability of enterprises, this study took BYD as a case study and analyzed the influencing factors of profitability through financial statements. The study aimed to examine the impact of balance sheet, income statement, and cash flow statement on profitability.
This study is based on the theory of performance evaluation and management, using the qualitative research method to analyse the data based on the DuPont Analysis. The annual reports of listed companies, the balance sheet, income statement, and cash flow statement for 2019-2022 were successfully collected and analyged. The results of the study show that; 1) The solvency capacity under the balance sheet has an impact on the profitability of the enterprise; 2) The operating capacity under the joint influence of the income statement and balance sheet has an impact on the profitability of the enterprise; 3) The net increase in cash and cash equivalents in the statement of cash flows has an impact on profitability. Based on the findings of the study, recommendations include strengthening accounts payable operational capacity, improving accounts receivable operations and enhancing debt-servicing capacity.
Keywords: DuPont analysis, profitability, BYD Company
A Study of BYD’s Profitability Based on DuPont Analysis /
6417195023 Wang Mengli 2567 (2024) A Study of BYD’s Profitability Based on DuPont Analysis สารนิพนธ์ (Independent Study), Advisor: Dr. Ma Yu, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University