海尔vs西门子财务报表分析报告英文版

The Financial Data Analysis ——Haier VS Siemens
CONTENTS
1. Preface
2. Company Introduction
3. Overview of the annual report
4. The business environment
5. The auditors
6. Analysis of the companies’ financial statements
1) Assets and liabilities
comparison analysis
2) Debt-repaying ability analysis
3) Operating capacity analysis
4) Profitability analysis
5) Return on investment
6) Growth
7) Cash flow
① Cash solvency
② Cash earning from sales
③ Cash earning from in vestment
7. Coda
8. References
The Financial Data Analysis
1. Outline
Since the operating environments for economic entities are dynamic, accounting must also stay current with changing environments. Only then can it possibly retain its relevance and reliability for economic decision-making. International accounting is in direct response to the globalization phenomenon. In order to better understand international accounting, our group chose two companies---Siemens & Haier. We compare and analysis the annual financial reports.
2. Company Introduction
1) Siemens:
Siemens Company is created by Nashville Von Siemens in 1847 and it headquarters in Munich, Germany. Siemens Company has been 160 years. It is currently one of the world's largest electric companies, and in Europe, ranking second. In 190 countries it
set up enterprises, and its employees are about 44 million. Siemens has more than 900,000 shareholders, and is the world's largest one of the listed companies. From March 2001, Siemens shares on the New York stock exchange (NYSE) listed for trading. Siemens global business operation respectively by 13 business groups is responsible, including Siemens financial service Co., LTD and Siemens real estate assets management group.
Its main business scope：Information & communications, automation & control, power, transportation, medical system & lighting and so on. We can go to to learn more about Siemens Company.
2) Haier Company:
As we all know, Haier Company headquarters in Qingdao of our country. Haier is the leading brand of white goods globally and the most valuable brand in China. With its 29 manufacturing plants, 8 comprehensive R&D centers, 19 overseas trading companies across the world and more than 60,000 global employees, Haier has involved into a giant multinational corporation.
As of this year, Haier as established 61 trading companies (19 outside of China), 8 design centers (5 outside of China), 29 manufacturing facilities (24 outside of China) and 16
industrial parks (4 outside of China). In addition, the company maintains 58,800 sales outlets in over 160 countries. Haier is achieving its goal of building a global brand using the "Three-in-One" localization strategy. Haier employs more than 50,000 people around the world, and has created 10,000 jobs outside of the PRC. We can go to to learn more about Haier Company.
3. Overview of the annual report
Typically, we can find six different sections in the annual reports: 1) Financial Highlights; 2) Company and Products; 3) Management Discussion and Analysis; 4) Financial Statements and Footnotes; 5) Statement of Management Responsibility and the Report of the Independent Accountants; 6) Basic Company Facts. And there are some obvious substantial deviations in our companies’ annual report from the six sections. The two companies have some same kinds of products but they have more different kinds, and their coverage of the products is also obviously different. The different industry environment and the different government's policy make different management discussions. And so on. .
From , we can know that Haier is well-established nearly three
years. And Siemens is not as well as Haier on the basic of the data.
4. The business environment
The business environment in which the company is operating is important. And the business environment entails economic, legal and socio-political factors. Understanding how these factors influence the company's operations and business strategy will enable us to have a richer basis for interpreting its financial picture.
Haier's development conforms the macro economic reform and development, has held the advantageous development opportunity, 1993, for the rapid development of market successfully solved the sorrow, raising capital before China enters the WTO, will strategic shifting to international market; Secondly, Haier is located in the rapid economic development, has a profound traditional culture, especially in the Shandong province is located in the famous enterprise known breeds of Qingdao city, convenient transportation, besides the Haier group, there are Qingdao Hisense, Qingdao binaries, AoKeMa, Qingdao beer, domestic famous enterprises. Visible, Qingdao in various aspects have to let the rapid development of enterprise
excellent environment. Therefore, in the external environment, Haier has the advantage of sharing.
And Haier group have been proposed "from a manufacturing into service" slogan. “Haier service” is neither pure service, also is not merely products, but service and products of integration. Haier group in Los Angeles, Amsterdam, Tokyo, Lyon, Montreal and silicon valley established overseas design division, help headquarters specially developed for locals consumption of electrical appliances product, Haier has batch production suitable for Europe, America, Asia different consumer needs different function of electrical appliances product, thus rapidly improve the competitiveness of the enterprises.
With China's household electrical appliance enterprise continuously rise, technical improvement, Haier must constantly improve science and technology innovation level, and improve their advantage. Also should towards
multi-industry development direction, in order to improve their competitiveness. Facing Haier's informatization, domestic peers about is watching haier external informatization lively, while tightening their internal informatization, this is Haier faced the threat.
Along with the development of Haier, Haier began by domestic began to international consequences of march, so many is make overseas enterprises such as SONY, Panasonic, Samsung, LG, Siemens, and so on became Haier rivals. Make it develop international market by some obstacles.
Siemens, as a transnational enterprise, has its own advantages but also face the similar threats.
5. The auditors
In our capital markets, public accounting firms perform an important audit (attest) function to provide confidence in the integrity of those statements. We read the companies’ audit report to learn more about what is happening in the public accounting profession.
For example with the 2020 audit reports of the two companies, we can understand the importance of the audit for accounting work. . Through the audit work, can restrict economic activities in various negative factors can improve the economic management level and economic benefit, and to promote the social and economic order of healthy.
6. Analysis of the companies’ financial statements
1) Assets and liabilities comparison analysis —comparison of structure percentage
We can see that Haier’s debt structure is rising year by year, as Siemens is dropping. But they all keep in a certain range. And the range is reasonable. The companies use the financial leverage effectively and also avoid the risks because of lots of liabilities.
2) Debt-repaying ability analysis
The calculation shows that in Haier Company every 1 Yuan current liabilities have Yuan liquidity support in 2007. But the next two years the index drops. This shows Haier’s debt security level has decreased. The index of Siemens is going up, its debt security level is improved.
3) Operating capacity analysis
Total asset turnover reflects enterprise asset to create sales revenue ability. The two companies’ total assets turnover decreases in a small range. And Haier’s sales revenue ability is better than Siemens from the data. However, two of them have good asset management efficiency.
From the data, Haier’s index of inventory turnover is a little high. Compared with 2020, the index in 2020 has decreased. Anyway, the inventory liquidation ability of Haier is strong; the level to take fund is low. And Siemens is not as good as Haier, but its ability is more stable.
4) Profitability analysis
The two companies’ cost of goods sold ratio is low. This shows two of them have a high level on cost control. And the operating income ratio of them keeps a stable level. Sales net interest rate per unit reflects the enterprise sales income gained in the amount of the net. Siemens’ net profit ratio has a modest increase, while Haier stay the same on the whole. All above indicate both of them keep a stable profitability through the daily business activities.
5) Return on investment
ROA is an important kind of financial indicators. The index embodies the relationship between the assets using efficiency and the fund application effect. ROA of Haier decreases by % in 2020 compared with indicates that Haier’s ability of
return on investment decreases. So the company should pay attentions. And Siemens’ ROA just decreases by %. It doesn’t matter and just keep this level.
ROE, an index that based on the owners’ equity, assesses the company’s enterprise profitability and investment reward ability. Though ROE of the two companies decreased in 2020, they are still in the front row.
6) Growth
The net assets growth ratio reflects the capital accumulation of a company. It is a symbol to show a company’s strong, and it is the source of a company’s expanded reproduction. Haier’s net assets growth ratio is a little low. Haier has the ability to improve its capital preservation sex. The index of Siemens is negative. It shows owners’ equity is damaged.
Sales growth ratio of the two companies is almost equal to zero and even less than zero. They should pay more attention to product sales.
Assets are the resource of earning revenues and the security of debt repayment. The total assets growth ratio of Haier and Siemens is almost equal to zero. This indicates both of them have adopted conservative development strategies.
7) Cash flow
①Cash solvency:
This table shows Haier and Siemens have a flush liquidity.
②Cash earning from sales:
The cash flow to net sales ratio of Haier is increasing year by year. Its ability of cash earning from sales is improving. But Siemens is decreasing. Siemens should pay attention. According to the cash flow to net profit ratio, Haier and Siemens, on the basis of net profit achieved, their ability to achieve the net cash flow from operating activities is high. The cash flow to operating profit ratio reflects the ability of a company to achieve the net cash flow from operating activities on the basis of net profit achieved. Both of them have a high ability and Haier is higher than Siemens.
③Cash earning from investment
Cash flow to net assets ratio inflects the company’s ability to achieve the net cash flow from operating activities with total assets input. Haier has the strong ability. While Siemens decreased in 2020. However Siemens’ this ability is still satisfactory.
Cash flow to total assets ratio shows the cash return ability with the cash input by owners of enterprises. Haier’s this ability is clearly stronger than Siemens. Siemens should pay more attention.
7. Coda
All above, Haier and Siemens are worthy of well-known enterprises. And Haier is obviously better than Siemens from the data.
Moreover, today is advocating energy-saving and environmental protection. Environment report is more and more important. Haier and Siemens have realized this early. They have paid attention to keep energy saving and environmental. But I also want to raise a question about this: whether the used products which customers eliminated should be recycled. If they solve this question, it will be a way to increase resource utilization rate.
8. References
1) Haier annual reports: 2007, 2020, 2020
2) Siemens annual reports: 2007, 2020, 2020。