Through analysis of BYD, this artic

Through analysis of BYD, this article found that the shortcomings of BYD's development strategy began to appear. Through accounting analysis, it can be found that BYD has a high proportion of fixed assets, accounting for about 40% of total assets. Accounts receivable have grown too fast, and their share of total assets has also increased year by year, with bad debt reserves at a high level. This is due to the company's credit sales model. The high level of accounts receivable and difficulties in collecting payments have caused the company to run out of cash. Through the analysis of the Harvard framework of BYD ’s financial statements, it can be found that the shortcomings of BYD ’s vertical integration strategy have begun to appear, and the company needs to adjust its development strategy.