Asset structure refers to the proportion of various types of assets to the total assets... Analyzing the asset structure helps to assess the exit barriers, operating risks and technical risks of enterprises. Generally speaking, the higher the proportion of fixed assets and intangible assets to the total assets, the higher the exit barriers (exitbar daily) of enterprises and the smaller the free choice of enterprises.

When competition in the industry in which the company is located intensifies, profit margin shrinks, and development prospects are unclear, enterprises usually face two options: exit competition or continue to compete. For enterprises with low proportion of fixed assets and intangible assets to total assets, the opportunity cost of choosing to exit competition requires a smaller opportunity cost.

On the contrary, for enterprises with a high proportion of fixed assets and intangible assets to total assets, the strategy of choosing to exit competition requires high opportunity costs, because investment in these assets (especially fixed assets) is likely to become scrap copper and iron (sinking costs). Out of helplessness, such companies have to choose to continue to participate in the competition strategy, and the result is that they often bear huge market, operational and financial risks, but can only obtain insignificant returns and even huge losses.

The fixed assets of the three major automobile companies account for a high proportion of total assets, which belongs to a typical capital-intensive industry), while Microsoft's fixed assets account for a minor proportion, which belongs to a typical knowledge-based industry. Taking 2006 as an example, General Motors, Ford Motor and Dyke Auto's fixed assets account for 32.3%, 24.5% and 37.4% of total assets, respectively, while Microsoft's fixed assets account for only 6.9% of total assets, which shows that the exit threshold of the three major automobile companies is significantly higher than that of Microsoft, and the free choice is smaller than that of Microsoft.

The proportion of fixed assets and intangible assets can also be used to evaluate the operating risks of an enterprise.

What is risk? Economically, risk is defined as uncertainty. Risks can be divided into three types: economic risk (including environmental risk and market risk), operating risk (the relative ratio of fixed costs to variable costs) and financial risk (capital structure and interest rate structure). These three types of risks will lead to fluctuations in corporate profits (financially, risk is defined as the variable surname of profits).

The depreciation of fixed assets and the amortization of intangible assets belong to fixed costs. The higher the proportion of these two types of assets to the total assets, the higher the proportion of fixed costs to the total costs. Other conditions remain the same. The higher the fixed cost ratio, the greater the operating risk of the company, because this cost structure is likely to lead to the amplification of the risk transmission effect. The proportion of fixed assets of the three major automobile companies in total assets is significantly higher than that of Microsoft, so their operating risks are many times higher than that of Microsoft. This also explains from one aspect why the fluctuation of the net profit of the three major automobile companies is significantly greater than that of Microsoft when there are adverse changes in the operating environment and market environment.

Generally speaking, the higher the proportion of fixed assets to the total assets, the greater the technical risks faced by the enterprise. This is because capital-intensive enterprises may suffer from outdated fixed assets, especially the emergence of new technologies, which can easily lead to such enterprises having to make provisions for impairment of fixed assets due to outdated technology.

In addition, in order to keep up with the pace of industry development, capital-intensive enterprises must continue to use the hard-earned cash flow from their business activities to renew fixed assets, increasing capital demand in the future.

Assets refer to resources owned or controlled by an enterprise due to past transactions, matters and circumstances that can bring future cash flows. According to this definition, one of the methods to evaluate the quality of an enterprise's assets is to analyze the cash content of an asset. The higher the cash content of an asset, the better the asset quality, and vice versa.

First of all, the higher the cash content of assets, the greater the financial impotence of the company. For enterprises with sufficient cash reserves, once a once-in-a-lifetime investment opportunity or other profitable opportunities appear in the market, they can quickly utilize it, and they can also calmly deal with the market adversity that arises. On the contrary, for enterprises with severely lacking cash reserves, no matter how good the investment opportunities and other opportunities are, they can only sigh, and they often fail to recover from unexpected market adversity.

The cash content in Microsoft's total assets in the past six years ranged from 53% to 78%, indicating that it has an unparalleled financial title. The cash content in the total assets of the three major automobile companies rarely exceeds 15%, and the financial title is extremely low.

It is worth mentioning that the reason why Microsoft's cash content from 2004 to 2006 has decreased year by year is mainly because on July 20, 2004, Microsoft announced a $76 billion cash dividend package, including a special cash dividend distribution of US$32 billion in 2004, and a net repurchase of US$17.1 billion and US$20.8 billion in 2005 and 2006 respectively.

Secondly, the higher the cash content of the assets, the lower the risk of potential losses in the enterprise. Conversely, the higher the risk of potential losses.

If most of the assets of a company are composed of non-cash assets (such as receivables, inventory, long-term equity investments, fixed assets and intangible assets), then the company will suffer bad debt losses, depreciation losses and impairment losses. The largest asset project of the three major automobile companies is financial assets. Among these financial assets, the receivables of the financial and insurance departments of the three major automobile companies (debt claims against automobile dealers) ranks first.

In 2006, General Motors sold its subsidiary gmac, which is engaged in financial insurance business. Gmac's statements are no longer included in the scope of consolidated statements, so the receivables have dropped significantly. In 2006, GM's total assets were US$186.1 billion, a sharp drop from US$474.2 billion in 2005.

Judging from the three major automobile companies as a whole, the performance is so poor, let alone General Motors, which has the worst performance among these three major automobile companies.

Edward had thought about it several times on the way he came. Although he was born in Ford, although he no longer worked for Ford, he was very interested in being able to bring GM, his old rival, under his command.

Edward finally left. He was feeling like he came and still feeling like he left.

Jiang Feng did not give him any reassurance or tricks. It all depends on whether Jiang's automobiles have that digestive ability, or it depends on how many concessions the United States can make in terms of conditions.

General Motors controls a fairly complete sales channel, which is the heaviest weight that General Motors itself feels can take, and General Motors itself has no ability to use it and has no time for it to use it.

However, Jiang Feng also reminded Edward that General Motors actually has another unaware resource, that is their human resources. As a veteran first-level automobile company and a long-term enterprise engaged in automobile production and research and development, their abundant human resources are not comparable to ordinary enterprises. In the automotive industry, human resources are very rich in meaning, not only talent resources in design, manufacturing, development, and marketing, but also represent a potential synonym behind it, that is, human resources.

Jiang Feng only listed the risks that may be faced by swallowing General Motors and the benefits that may be brought about. Although Edward hoped that Jiang Feng could give him a positive answer, Jiang Feng refused. As he said, no one has the knowledge of the business operator himself, and whether he can take over this big guy must be decided by Edward and others.

Edward had thought about it several times on the way he came. Although he was born in Ford, although he no longer worked for Ford, he was very interested in being able to bring GM, his old rival, under his command.

Edward finally left. He was feeling like he came and still feeling like he left.

Jiang Feng did not give him any reassurance or tricks. It all depends on whether Jiang's automobiles have that digestive ability, or it depends on how many concessions the United States can make in terms of conditions.

General Motors controls a fairly complete sales channel, which is the heaviest weight that General Motors itself feels can take, and General Motors itself has no ability to use it and has no time for it to use it.

However, Jiang Feng also reminded Edward that General Motors actually has another unaware resource, that is their human resources. As a veteran first-level automobile company and a long-term enterprise engaged in automobile production and research and development, their abundant human resources are not comparable to ordinary enterprises. In the automotive industry, human resources are very rich in meaning, not only talent resources in design, manufacturing, development, and marketing, but also represent a potential synonym behind it, that is, human resources.

Jiang Feng only listed the risks that may be faced by swallowing General Motors and the benefits that may be brought about. Although Edward hoped that Jiang Feng could give him a positive answer, Jiang Feng refused. As he said, no one has the knowledge of the business operator himself, and whether he can take over this big guy must be decided by Edward and others.

Edward had thought about it several times on the way he came. Although he was born in Ford, although he no longer worked for Ford, he was very interested in being able to bring GM, his old rival, under his command.

Edward finally left. He was feeling like he came and still feeling like he left.

Jiang Feng did not give him any reassurance or tricks. Everything depends on whether Jiang's automobiles have that digestive ability, or it depends on how many concessions the United States can make on the conditions. (To be continued.
Chapter completed!