Evaluation of the Profitability and Liquidity of the TSINGTAO Brewery Company Limited

Abstract

In this article we analyze the profitability and liquidity of Tsingtao Brewery Company Limited. We use common-size analysis to the financial statements and calculate the profitability and liquidity ratio. Then do the pyramidal decomposition to ROE and current ratio. We found that Tsingtao brewery limited is has clearly advantage over its main competitors. It has high profitability and liquidity. In future the company should keep the increasing tendency and try to make its structure stable. It needs to improve the management and control the expenditure to get a high profit. We believe in future Tsingtao will have better development.