Huawei Financial Statement Analysis: Performance, Strategy, and Future

This report provides a detailed financial analysis of Huawei, focusing on its financial statements from 2016. It examines various financial ratios, including current ratio, quick ratio, inventory turnover ratio, debtor's turnover ratio, and assets turnover ratio, to assess the company's performance and stability. The analysis includes recommendations for improving the company's financial management, such as adopting both operating and non-operating forms of presentation and strategic planning based on customer satisfaction and competitive pricing. The report also touches upon Huawei's business structure, change management issues, positioning statement, and market challenges in a global economy, concluding that the use of financial statement analysis is crucial for the company's development and smooth operation.

FINANCIAL MANAGEMENT AND DECISIONS

Introduction
 Achievement of success in an organisation requires the
specific task to be completed among which the
understanding of the performance of an organisation is
one. The development of the success o the
organisation is based on the proper analysis of the
balance sheet and other developmental ratios from the
financial statements. The development of the
organisation is based on the proper analysis o the
financial ratios of an organisation. In this report, the
financial statement of the year 2016 of Huawei is
compared for the proper understanding of the stability
of the organisation. The report also deals in with the
recommendation for the better development of the
organisation in coming years.

Forming or mixing of existing
finance
 The Huawei prefers the
external source of fiancé in
the organisation for the
smooth development of the
organisation. It is evident
that the rise in the
organisation is due to the
smooth achieving of the
fiancé from the
shareholders of the
organisation The Huawei
also prefers the use of the
interval financing source
for the making of the
objective smooth and the
greasy.

Raising of New Finance
 As mentioned by Tse et
al. (2016, p.1179), the
use of the finance in the
field of development is
one of the most
important criteria for the
better development in
coming year. It is
essential to understand
that the rise in the
development chance is
from the allocation of the
finance in proper and
required ways.

Contd..
 The use of the
internal source of
funding and
finance would
help in the better
rising of the
ownership of the
organisation.

Performance of the
company
 The performance of the company in
terms of above calculation marks that the
use of the resources and the
development of the organisation are not
up to mark and does not contributes to
smooth operation of the organisation.

Contd…
Column1 Column2 Column3
Current ratio
Curent assets 301646
Curent liabilities 212627
Current ratio 1.418662729

Contd…
Column1 Column2 Column3
Quick Ratio
Cash 110561
Short term investments 14647
Recievables 93260
Quick Ratio 11.08187075

Activity ratios
 The activity ratio includes the
inventory/stock turnover ratio in the
organisation. The debtor's turnover ratio,
Assets turnover ratio and Creditors
turnover ratio are included in the activity
ratios of an organisation.

Contd…
Column1 Column2 Column3 Column4 Column5 Column6 Column7
Inventory turn over ratio
Cost of goods sold 230312
Average stock 53969.5 Average stock op cl
46576 61363
Inventory turnover ratio 4.267447355
Average stock 53969.5

Debtor’s turnover ratio
Column1 Column2 Column3 Column4 Column5 Column6
Debtors turnover ratio
Credit sales 395009
Average debtors 1272 openiong closing
446 2098
Debtors turnover ratio 310.5416667
Average 1272

Assets turnover ratio
 As supported by Arkan et al. (2016, p.25),
the assets turnover ration marks the
changes of the assets in the organisation
in a single fiscal year. The development
of the Assets turnover ratio marks the
multiplication or the rotation of the assets
in the organisation