Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)

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Through Background Research and Financial Data to Analyze Midea’s Operating Conditions

Authors
Yujie Li1, *
1Asia Australia Business College, Liaoning University, Shenyang, 110136, Liaoning, China
*Corresponding author. Email: renshichu@lnu.edu.cn
Corresponding Author
Yujie Li
Available Online 14 December 2022.
DOI
10.2991/978-94-6463-054-1_38How to use a DOI?
Keywords
WACC; valuation model; business analysis; financial analysis
Abstract

This article is written in the context of the prevalence of COVID-19, the penetration rate of household applicants in China continues to improve. However, under the influence of COVID-19, the household applicants market is under heavy pressure, with low demand and obvious price rise. This paper analyzes and solves how to improve this situation. At present, it should start from various indexes of household applicants industry and find out solutions. The research object of this paper is Midea, as the leading enterprise in the household applicants industry, which is the most representative enterprise. This paper investigates Midea's business background and some valuation methods such as: H Model, General Two Stage Model and Golden Growth Model to evaluate enterprises and analyzes their operating conditions by calculating relevant financial indicators. Through this analysis, it is concluded that Midea's enterprise value is overvalued, its leverage ratio is increasing year by year and its financing cost is at the average level of the industry. The analysis of this article is of vital significance to Midea's management and is benefit for its improvement in the future.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2022
ISBN
978-94-6463-054-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-054-1_38How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yujie Li
PY  - 2022
DA  - 2022/12/14
TI  - Through Background Research and Financial Data to Analyze Midea’s Operating Conditions
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 336
EP  - 343
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_38
DO  - 10.2991/978-94-6463-054-1_38
ID  - Li2022
ER  -