Financial Analysis of a Power Company

Abstract

Based on A Power Company's economic management activities between 2012 and 2020, it conducts a horizontal and vertical analysis of the company's balance sheet, analyzes the income statement, cash flow statement, and evaluates profitability, operating ability, solvency Debt capacity and development capacity, the DuPont analysis method was used at the end. The company's accumulated total assets have increased rapidly, and current assets are always larger than non-current assets, which is in line with the characteristics of the photovoltaic industry. The ratio of shareholders' capital contribution is low, but the debt ratio is increasing, which proves that the company is expanding the role of financial leverage. The conclusion is that after many policy turmoil and shrinking sales, the company still has greater competitiveness.

Based on A Power Company's economic management activities between 2012 and 2020, it conducts a horizontal and vertical analysis of the company's balance sheet, analyzes the income statement, cash flow statement, and evaluates profitability, operating ability, solvency Debt capacity and development capacity, the DuPont analysis method was used at the end. The company's accumulated total assets have increased rapidly, and current assets are always larger than non-current assets, which is in line with the characteristics of the photovoltaic industry. The ratio of shareholders' capital contribution is low, but the debt ratio is increasing, which proves that the company is expanding the role of financial leverage. The conclusion is that after many policy turmoil and shrinking sales, the company still has greater competitiveness.