Study on Financial Competitiveness of Listed Companies in New Energy Vehicle Industry BYD as an Example

Abstract

As the environmental problems are becoming more and more severe, people attach more importance to environmental protection, boosting the heat of new energy cars. BYD takes the trend and becomes one of the leading companies in the new energy vehicle industry. This passage will take a deep look into BYDs financial data and develop a ratio analysis of the company. First, it will use the data from its financial reports from five years (2017-2021) to calculate its ratios in the four aspects: solvency, profitability, operating capacity, and growth capabilities. Compared according to the timeline, the companys changes are clearer. The trend of increasing or decreasing is shown directly. Then it will use the data in 2021 to compare to the average of the industry, locating the company itself in the industry. By doing the comparison, as BYD is expected to perform better than the average as it is one of the leading companies, whether BYD needs improvement is demonstrated. This research can offer a view of BYD in the new energy vehicle industry, with an analysis of how it behaves and how to improve.