Midea Group’s Financial Statement Analysis

DOI

10.2991/978-94-6463-835-6_37How to use a DOI?

Keywords

Midea Group; Financial Ratio Analysis; Profitability; Operational Efficiency; Investment Strategy

Abstract

Being a world-leading brand in the smart home appliances industry, it is crucial for us to have deep analysis of the company’s business condition when making decisions on Midea. Using the financial statements of Midea in 2023, this study will conduct specific ratio tests on profitability, liquidity, asset operation efficiency, debt status, and capitalization level, among others. Firstly, net profit margin, inventory turnover, days’ sales outstanding (DSO), Free Cash Flow/Total Debt, gross profit margin, P/E ratio, return on assets (ROA), can be calculated based on calculation formulas; then further conclusions such as revenue increases with control costs and improve net profit margin are made according to data trends: meanwhile due to long accounts receivable DSO time lengthening and low current rate declining, the overall corporate operation shows poor efficiency; furthermore although leverage ratio goes up owing to huge debts but supported by enough debt-free income from high TIE indicates relatively healthy default possibility; consequently proposing related investment strategy that buy more Midea share stock if holding diversified portfolio so as to maximize profit through investing into stable profitable leading companies; otherwise short selling at inappropriate P/E level trading market cyclically or hedging extreme risky portfolio structure also provides possible ways for investment choice.

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  - Yi Cai
PY  - 2025
DA  - 2025/09/17
TI  - Midea Group’s Financial Statement Analysis
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 350
EP  - 359
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_37
DO  - 10.2991/978-94-6463-835-6_37
ID  - Cai2025
ER  -