Analyzing the Financial Situation of Certain Company: The Case of Midea

Jie Zhang ()
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Jie Zhang: Wuhan Polytechnic University, Management School

A chapter in Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), 2025, pp 826-835 from Springer

Abstract: Abstract This paper takes Midea Group as the research object and analyzes its 2019–2024 financial statements to explore the financial risks faced by the enterprise in the process of rapid growth and expansion. It is found that Midea’s long-term debt service risk is in the middle of the industry, the overall fluctuation of the debt ratio is small, the growth rate of net profit is slowing down, there is no obvious advantage in cash flow, and the efficiency of inventory turnover is declining, etc. The main reasons leading to the current situation are the financing pressure in the process of mergers and acquisitions, and the continuous increase in the cost of raw materials and the lack of synergies and cooperation among supply chains have a negative impact on the overall operational efficiency of the enterprise. The main reasons for the current situation are the financing pressure during the M&A process, the continuous increase in raw material costs, and the lack of synergy between supply chains, which also negatively affects the overall operational efficiency of enterprises. Aiming at the above problems, this paper puts forward three major suggestions to optimize the strategic layout of the enterprise, optimize the allocation of financial resources, and optimize the capital structure, so as to provide practical references for enterprises in the home appliance industry to balance the scale expansion and financial health.

Keywords: Midea Group; Financial Analysis; Business Model; Financial Challenges (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-874-5_95

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