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

DOI

10.2991/978-94-6463-874-5_95How to use a DOI?

Keywords

Midea Group; Financial Analysis; Business Model; Financial Challenges

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.

Copyright

© 2025 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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TY  - CONF
AU  - Jie Zhang
PY  - 2025
DA  - 2025/11/03
TI  - Analyzing the Financial Situation of Certain Company: The Case of Midea
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 826
EP  - 835
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_95
DO  - 10.2991/978-94-6463-874-5_95
ID  - Zhang2025
ER  -