Analysis of Financial Statements of China Vanke Company Limited

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

This research aims to perform the financial analysis of Vanke China Limited. Vanke is the China's largest professional residential development company, and also the representation of real estate in the stock market. The report provides the introduction of Vanke China Limited, and discusses the development of China Real State Sector. The researcher conducts the financial analysis of Vanke China Limited; any thoroughly discuss the financial ratios of Vanke China Limited. After discussing the financial ratios of China limited in detail, researcher gives conclusion over the analysis and explores the areas of further research.

Table of contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION7

Back ground of the Study7

Overview of Vanke China Ltd7

Overview of the real estate industry in China8

CHAPTER 02: LITERATURE REVIEW9

Framework for understanding the real estate industry13

External environment for real estate industry14

Economic Environment15

Social and Cultural Environment16

Urbanization Process16

Demographic Dividend17

Policy and Legal Environment18

CHAPTER 03: METHODOLOGY20

Research Approach20

Rationale for Adopting the Particular Research Design21

Analysis, Conclusion and Recommendation22

CHAPTER 04: FINDINGS23

Profitability Analysis23

Return on Net Assets24

Net profit margin on Total Assets24

Earnings per Share25

Total Assets Turnover26

Current Assets Turnover26

Inventory turnover rate27

Accounts Receivable Turnover Ratio28

Solvency Analysis28

Cash Ratio29

Long Term Solvency30

CHAPTER 05: ANALYSIS AND DISCUSSION32

CHAPTER 06: CONCLUSION AND RECOMMENDATIONS37

Conclusion37

Recommendation38

CHAPTER 07: EVALUATION39

REFERENCES40

APPENDIX42

CHAPTER 01: INTRODUCTION

Back ground of the Study

In the era of rapid economic development and immense competition, the organization cannot succeed without better self-competitiveness and self-development ability, to grasp the dynamics of the economy, and for this we must attach importance to the financial analysis. The financial analysis is the true face of corporate standing, operating results and financial condition of a business. Financial analysis dug out from the accounting data by the accounting procedures that will provide a basis for decisions for investors and creditors.

Although the audit can improve this situation to a certain extent, but the auditor cannot absolutely guarantee the authenticity and appropriateness of financial statements, they work only for users of the report and provide a reasonable basis to make the right decisions. Financial analysis is particularly important for decision making. Through financial analysis, business managers can reasonably evaluate operating results of operations. Through the financial analysis, investors can predict the income level and degree of risk in the investment to make the right investment decisions.

Overview of Vanke China Ltd

Vanke is the China's largest professional residential development company, and also the representation of real estate in the stock market. Vanke Co., Ltd. was established in May 1984, involved in real estate since1988. Its headquarters is in ...