Comparative Analysis of Real Estate Financial Model: Evidence from Vanke and Evergrande

Abstract

Contemporarily, the impact of the real estate industry on the overall economy is particularly prominent. However, the financing mode and financial structure of the real estate enterprises are still lack of summary and scientific analysis. Therefore, through the difference analysis of the financing mode and financial statement of Vanke and Evergrande, this study summarizes the financial mode that is more conducive to the booming of the real estate enterprises. In this paper, we collect the financial statement and enterprise investment data of Vanke and Evergrande, carry out difference analysis, visualization, and trend analysis on the data, as well as compare and explore the different financial models of them. Enterprises should pay attention to the proportion of long-term debt in total corporate debt to avoid causing excessive capital flow pressure. The management of enterprise leverage and risk assets is crucial to the long-term development. A healthy enterprise cannot develop without the correct use and scientific management of loans and risk assets. They should focus on the rationality of short-term loans, effectively mitigate the pressure of debt repayment. The real estate financial model proposed here is a summary from Vanke and Evergrande, which is not a universal financial model. These results shed light on guiding further exploration of the rational financial models in the real estate enterprises.