小米财务分析英文

小米财务分析英文
Financial analysis of Xiaomi
1、Company profile
Founded in April 2010 in Beijing, xiaomi is a company with an engineering-led culture. It always focuses on technological innovation, quality, design, user experience and efficiency of products and services, and is committed to making science and technology fun for the whole world at a cost-effective price. Millet founded in that year released a beautiful MIUI system, the first handset released the following year, successful have to use the Internet marketing methods and fans culture broke the pattern of domestic mobile phone market, became the mainland market in 2014 smartphone shipments ranked first, and become the world's third largest after apple, samsung smartphone makers. In addition to the continuous expansion in the field of smart phones, 2013
In 2011, xiaomi began to focus on the layout of the Internet of things ecological chain system, and took the lead in launching the mi bracelet and air purifier products. It is expected to enter into hundreds of segments through hundreds of ecological chain enterprises invested in the next five years, so as to form a huge fleet of intelligent hardware led by xiaomi. In 2015, the monthly active users of MIUI system exceeded 100 million, and xiaomi gradually launched a series of extensive Internet application services through the MIUI platform. In the same year, xiaomi started the offline retail of xiaomi home to provide users with better user experience.
In 2016, xiaomi experienced a low point in the smartphone market and encountered a bottleneck in its research and
development. However, in 2017, xiaomi's ecological chain layout has achieved initial results and become the world's largest consumer IoT platform, which has also driven the common development of the smartphone field, making its business revenue over 100 billion yuan. On July 9, 2018, xiaomi group was officially listed on the main board of the Hong Kong stock exchange (hkex) as the first listed company with "different rights to the same shares". Xiaomi's market performance in 2018 is still impressive, with smartphone shipments exceeding 100 million ahead of schedule and smart IoT consumer goods continuing to gain momentum.
2、Profitability analysis
According to the financial information of xiaomi from 2016 to 2018, multiple indicators reflecting the profitability of xiaomi are analyzed. The specific results are as follows:
Combined with the above growth rate indicators, it is found that the gross profit rate and net profit rate of xiaomi are in a state of constant fluctuation. As xiaomi's smartphone market cooled at the end of 2016 and its revenue growth was not obvious, its net interest rate was negative in
2017. The market gross profit of millet has been growing steadily in the past three years, and the gross profit rate has been increasing steadily. To sum up, with the increase of the scale of xiaomi, the asset turnover rate has declined, but the overall profitability of xiaomi is constantly improving.
3、Operational capacity analysis
From the perspective of assets, xiaomi's current assets accounted for 63.75%, 60.35%, 68% and 67% from 2015 to 2018, and its cash reserves accounted for a large proportion. The ratio of accounts receivable to inventory is very low, among which accounts receivable remain around 5% all year round, while the proportion of inventory also dropped from 22% in 2015 to 15% in 2018. Secondly, from the perspective of production, xiaomi does not have its own proprietary factories, and the final products are all outsourced to ODM/OEM for OEM production. Therefore, the factory is the service supplier of xiaomi, and it checks the production process, raw material quality and logistics service of xiaomi products. However, it involves some core components and components with relatively high prices. Xiaomi usually purchases and distributes them to the OEM by itself, thus forming an efficient and unique supply chain through special operation forms.
Table of xiaomi asset turnover from 2016 to 2018
Xiaomi's average inventory turnover is 49.6 days, a turnover rate unmatched by most of its peers. It has surpassed fast-moving consumer goods brand H&M and is on a par with global department storesMar. Xiaomi's hunger marketing is closely tied to the zero inventory model. First of all, through the pre-sale mode, xiaomi can order production by sales and notify the inventory management department of the enterprise through Internet technology, so that the enterprise can obtain accurate order data, so as to scientifically arrange production tasks and adjust the production pace of the enterprise, so as to ensure the maximization of the overall efficiency of the supply chain system. Secondly, xiaomi enterprise opens up channel level inventory. For OEM manufacturers to produce qualified products, the enterprise can use the OEM warehouse for inventory turnover and deliver the pre-sold products. Through the information management means, xiaomi enterprise realizes the
internetization and transparency of enterprise management, ensures the accurate connection between enterprise inventory management and transportation management system, and ensures the internetization and dynamic of inventory management, which controls the turnover cost of the enterprise to a large extent and improves the overall operating efficiency of the enterprise.
4、Solvency analysis
Solvency refers to the ability of a company to repay its debts on time. The higher an enterprise's solvency is, the higher its market valuation will be and the less difficult it will be to raise operating funds. On the contrary, if an enterprise's debt paying ability is defective, it will affect investors' investment determination and investment intensity. It will not only seriously
affect the market reputation of the enterprise and increase the difficulty of financing, but also lead to the poor financial indicators and pressure on the market value of the enterprise.
From the analysis of short-term solvency, the enterprise's short-term solvency can be comprehensively measured and evaluated by the current ratio advancement and quick ratio, and the current ratio also rises to 1.71,
which is relatively optimistic. However, although the quick ratio of xiaomi has been floating slightly in recent years, it has been floating around 1.0 and is in a relatively stable state, which means that the short-term solvency of xiaomi is relatively weak. From the analysis of long-term solvency, the asset-liability ratio of xiaomi was 241.55% in 2017 and 50.93% in 2018, which is reasonable compared with the data of other comparable companies. However, it still means that the long-term solvency of xiaomi is not particularly strong at the present stage. Therefore, from the perspective of solvency, solvency increases the financial risk of xiaomi company to some extent.
5、Development capability analysis
By analyzing the operating income and gross profit of Xiaomi Technology from 2016 to 2018, it can be seen that its operating index has been growing rapidly in recent years, and the expansion strategy adopted by the enterprise has also been effective. In 2016, its operating revenue was only 68.434 billion yuan, and in 2018, it grew rapidly to 174.915 billion yuan, indicating its strong development and growth capacity.
6、Conclusions and recommendations
By analyzing the financial indicators of Xiaomi in recent years, we find that Xiaomi has a good development trend. But some improvements are needed.On the one hand, it is necessary to construct a more comprehensive and flexible mechanism for each link of financial risk control, so as to prevent and control financial risk management rationally. For example, the establishment of financial risk early warning system, through the development of a unified and complete risk early warning standard system, can search for financial risk-related management information, standardize the financial risk evaluation standard of Xiaomi, so as to reasonably regulate early warning financial risk.
On the other hand, the assessment mechanism of financial risk management should be done well and the assessment system of financial risk management should be strictly implemented to ensure that the financial risk management can be carried out in a more standardized and orderly manner. On the other hand, a mutually unified financial risk control mechanism should be established to make a unified standard for the content of financial risk control of the parent company and subsidiaries. On the other hand, the responsibility scope of the financial risk management department should also be clarified,
specific to individuals and every detail. At the same time, we should have the courage to explore and innovate financial risk control activities, strengthen capital investment in financial risk analysis and control, and cultivate and
introduce new financial risk management talents, so as to reduce the negative effects of operational strategies on financial risk analysis and control.。