Download pdf
Analysis of Financial Performances for LI Company: Comparison with Ford,Toyota and General Motors
- 1 Department of Accounting, East China University of Political Science and Law, Shanghai,China
* Author to whom correspondence should be addressed.
Abstract
As a matter of fact, vehicle industry has changed a lot due to the rapid development of new energy vehicle. This study presents an analysis of the financial performance of Li Auto in comparison to industry leaders Ford, Toyota and General Motors, with a particular focus on their investment value. The utilisation of key financial metrics, including EPS, P/E, and PEG ratios, enables the revelation of Li Auto's robust growth, as evidenced by a 69% EPS increase and a PEG ratio of 0.316. According to the analysis, it is suggested that the stock is undervalued and possesses high potential. In contrast, the negative growth and high PEG ratio observed in Ford indicate that the market is expressing concerns about the company's future prospects. Meanwhile, despite displaying stable performances, GM and Toyota have demonstrated lower growth rates. The analysis presents Li Auto as a promising investment in the electric vehicle market, emphasising the necessity for prudent investment decisions based on comprehensive financial insights.
Keywords
Vehicle industry, Li Auto, Investment Value, financial performances.
[1]. Khan, M.A., Khan, M.Z., Zaman, K. and Naz, L. (2014). Global estimates of energy consumption and greenhouse gas emissions. Renewable and Sustainable Energy Reviews, 29, 336-344.
[2]. Çalık, H. and Fortz, B. (2019). A Benders decomposition method for locating stations in a one-way electric car sharing system under demand uncertainty. Transportation Research Part B: Methodological, 125, 121-150.
[3]. Zeng, B., Duan, H. and Zhou, Y. (2019). A new multivariable grey prediction model with structure compatibility. Applied Mathematical Modelling, 75, 385-397.
[4]. Wilberforce, T., El-Hassan, Z., Khatib, F.N., Al Makky, A., Baroutaji, A., Carton, J.G. and Olabi, A.G. (2017). Developments of electric cars and fuel cell hydrogen electric cars. International Journal of Hydrogen Energy, 42(40), 25695-25734.
[5]. Xin, Y. (2023). Analysis of marketing strategy of new energy vehicles: taking Ideal Vehicle as an example. China Management Information Technology, 26(16), 140-142.
[6]. Yang, J. (2010). A Case Study of Global Corporate Bankruptcy from the Perspective of Cost Management--The Case of General Motors Corporation in the United States. Frontier, 14, 109-112.
[7]. Madoh, A., Alenazi, J., Alkhamees, L. and Panwar, A. (2019). Case study on market mix strategies of Toyota Motor Corporation. Asia Pacific Journal of Management and Education, 2(3), 70-78.
[8]. Dines, P.A. (2016). General Motors case study. Economics and Business Administration Roskilde University, 136, 29.
[9]. Islam, M.R., Khan, T.R., Choudhury, T.T. and Adnan, A.M. (2014). How earning per share (EPS) affects on share price and firm value. European Journal of Business and management, 97-108.
[10]. Beaver, W. and Morse, D. (1978). What determines price-earnings ratios. Financial Analysts Journal, 34(4), 65-76.
[11]. He, Y. (2012). Relationship between firm's PE ratio and earnings growth rate. University of Cincinnati.
[12]. Hodgskiss, D.L. (2012). Does the PEG ratio add value?. University of Pretoria (South Africa).
Cite this article
Kang,H. (2024). Analysis of Financial Performances for LI Company: Comparison with Ford,Toyota and General Motors. Advances in Economics, Management and Political Sciences,155,113-118.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).