Reasoning Research on Financial Performance of Listed Companies After Asset Reorganization Based on Business Integration

DOI

10.2991/assehr.k.210407.186How to use a DOI?

Keywords

Financial Performance, Major Asset Reorganization, Business Integration

Abstract

This paper takes Midea Group’s absorption and merger of Little Swan through share swaps as an analysis case, and analyzes the financial performance of public firms in the household appliance industry before and after mergers and acquisitions based on accounting research methods. This paper collects the traditional financial indicators of the public firm in the last five years and one quarter, and examines performance in terms of financial status, profitability, capital structure and solvency. From the perspective of financial status, Midea Group’s assets and sales scale have been expanding year by year, and there are few idle funds because of active investing and financing activities. Although the main products have a relatively high market share, they have not taken full advantage of the acquired company, Little Swan, in the washing machine field. Mergers and acquisitions have little impact on the profitability of companies. Since the year of mergers and acquisitions, the increase in gross profit has decreased, and the impact of scale expansion on the marginal returns of commodities can be considered. From the perspective of current ratio, quick ratio, and cash ratio, mergers and acquisitions have a positive impact on the company’s solvency.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yipa Dong
PY  - 2021
DA  - 2021/04/08
TI  - Reasoning Research on Financial Performance of Listed Companies After Asset Reorganization Based on Business Integration
BT  - Proceedings of the 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021)
PB  - Atlantis Press
SP  - 990
EP  - 998
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210407.186
DO  - 10.2991/assehr.k.210407.186
ID  - Dong2021
ER  -