Analysis of Alibaba
Class: GTB1201
Name:Liu yi xia
ID: 135734306
Unit Code: D4X9 35
Tutor Name:Wei Jiankun
Wuhan University of Technology
Wuhan 430070 P. R. China
Content
1. Introduction ............................................................................................. 4
2. Financial Decision Making ..................................................................... 4
3. Effect of Exchange Rate Fluctuation ...................................................... 4
4.Methods uesd by the organization when reporting on its annual
accounts,including dates used and currency equivalence ........................... 5
5. Influences of Financial............................................................................ 6
6. Conclusion .............................................................................................. 6
7.Reference ................................................................................................. 7
1. Introduction
This report is going to analyze financial strategies. First, it explains how to organize the conditions of centralization and decentralization of management of financial decision-making, and then describes the methods and organization of exchange rate fluctuations will affect the organization adopted in the annual financial statements, including the use of currency equivalent date last elaborated financial impact.
2. Financial Decision Making
Financial management is planning, organizing, directing and controlling the financial activities, such as procurement and enterprise funds utilization. This means that the general principles of management of the company's financial resources. There are financial decisions, three of investment decisions, financing decisions and dividend policy.
Alibaba choose centralized financial decisions and regulation of budget policy setting subunit. Although the budget is generally prepared by the subunit may also be approved by headquarters management. One of the headquarters management function is to ensure a subunit challenging budget but realistic performance goals.
Alibaba centralized financial management often involves the procurement, distribution and control of financial resources a concern. Goal is to help subunit ensure regular and adequate supply of funds concerned, in order to ensure an adequate return to shareholders will depend on the profitability expectations, the stock market price, the shareholders, to ensure the best use of capital. Once the funds purchased, they should use the maximum possible ways to minimize the cost, security investment funds should invest in security companies, there is enough rate of return can be achieved, and to develop a sound capital structure should have a sound, Equity capital structure, to maintain a balance between debt and equity capital.
3. Effect of Exchange Rate Fluctuation
Obviously, fluctuations in the exchange rate would lead to transaction risk, to a certain extent, the fluctuations in the foreign exchange value of the trading income of
the individual. It includes for the purchase or sale of goods and services in terms of price and foreign currency obligations of the borrower or loan funds previously agreed-upon.
In order to solve complex problems, Alibaba can establish a good sense of risk aversion trade, prepared in advance, the risk may be some effective measures, such as reducing some restrictions, to reach a consensus on how much change will advance to accept.
However, on the contrary, the foreign exchange market to prevent foreign exchange risk insurance, the possibility of future changes in exchange rates will have unpredictable negative consequences in the company. Alibaba can guarantee or hedge possible unfavorable foreign exchange rate fluctuations. Meanwhile, exchange rate fluctuations may provide an opportunity for the company hype. .
4.Methods uesd by the organization when reporting on its annual accounts,including dates used and currency equivalence The report is divided into three aspects: the comparison of financial ratio analysis, a single year between different periods of comparative analysis, and other industry company. Here we will be divided into financial ratio analysis, solvency analysis capital structure analysis (or long-term solvency analysis), operating efficiency analysis, profitability analysis, investment analysis, cash support ability analysis, profit analysis.
Alibaba mainly uses analysis and analysis of investment income constitutes a profit:
Analysis of profit:
In order to allow investors to clearly see the inside of the profit table, I want to have some items stipulated by the accounting system of Limited by Share Ltd here (including: the main business income, other operating income, discount, investment income, subsidy income, operating income, main business cost, the main business tax and additional, other business expenses, inventory loss, operating expenses, administrative expenses, financial expenses, operating expenses, income tax, profit and loss adjustment in previous years). The ratio of net profit to make a profit table.
Analysis of investment income:
Earnings per share / market price = net profit per share
Net assets = net asset value per share / market price per share
Assets = market price per share / asset value per share
5. Influences of Financial
When the position of making production units, should consider financial factors. When Alibaba choose another product projects in a country can be considered tax incentives or tariffs, subsidies, encourage investment, wage structure and financing countries.
Tax preferential tariff barriers like Alibaba for international companies to enter the local market trade barriers to protect domestic industries, increase government revenues. A country of high tariff rates will fall or Alibaba since the cost will be higher, if you can consider the pricing strategy, the higher prices will affect sales except-profit.
Moreover, when the financing problems facing the company, or seek further development, it can attract grants from the government. In support of the government, the company not only to solve the financing problem, but also can achieve further expansion-and-development-smoothly.
At the same time, investment incentives sometimes depends on the potential and prospects of the market. A prosperous economy, the broad market will attract investment companies, because there are a lot of opportunities and broad prospects for development.
Typically, low-wage workers more attractive due to the production and management companies-can costs lower and get better profit.That helps a lot for Alibaba.
In addition, financial issues and financing difficult decisions in the target countries for the company to further development, especially smaller companies or face or funding shortages.
6. Conclusion
From the report we can find, organize the operation of centralization and decentralization of financial decision-making, exchange rate fluctuations will affect Alibaba, using some method to organize the annual accounts, including the date and currency equivalents, Alibaba financial impact of one country to another production project countries, including tax incentives, subsidies, encourage investment and wage structure.
7.Reference
[1]Engine oil SAE J 357-1999 physical and chemical properties
[2]Xin Xiaolin, Chery landed face German car standard was changed and renamed
[3]JIS D 1601-1995 auto parts vibration test methods
[4] ECE R114
[5]Chery history