Financial Statement Analysis of the New Energy Vehicle Enterprise—BYD

Abstract

With the increasingly severe global climate and energy issues, promoting the development of the new energy vehicle industry is becoming more and more important for governments around the world. As a leading new energy vehicle enterprise in China and even in the world, BYD plays an important role in the automobile market. This article selects BYD as the research object and analyzes the company's solvency ability, profitability, and growth based on its financial statement data from 2018 to 2022. By using horizontal comparative analysis and DuPont analysis, it is found that BYD has very excellent growth ability and good profitability, but it is weak in solvency ability and has potential liquidity risk. BYD should further enhance its profitability by increasing the profitability of its single vehicle in the future, and try to reduce its financial leverage as much as possible while maintaining its current high-speed growth trend to solve the problem of its weak solvency ability.