Financial Performance Analysis of NIO: Discussion on Profitability Based on DuPont Analysis Method

Abstract

In the context of increasingly fierce competition in the new energy vehicle industry, financial health has become a key factor for the sustainable development of enterprises. This paper takes NIO as the research object and conducts an in-depth analysis of its financial performance in 2024 based on the DuPont analysis method, revealing the fundamental reasons for its insufficient profitability. Through the decomposition of core indicators such as net profit margin from sales, asset turnover rate, and equity multiplier, the study finds that NIO lags significantly behind its peers (such as Tesla, Li Auto, and XPeng) in terms of net profit margin (-34.1%) and return on equity (-32.1%), reflecting multiple problems in its operational efficiency, cost control, and financial leverage usage. In response to the above problems, this paper proposes the following optimization suggestions: optimize the product structure and focus on core models to reduce costs; through strategic cooperation to share the construction costs of charging stations and improve asset turnover efficiency; strengthen R&D management; and differentiate in overseas markets to leverage policy advantages to enhance brand premium. This study not only fills the gap in the existing literature on the financial analysis of NIO but also provides practical references for similar enterprises in balancing technological investment and profitability. Future research directions can further explore debt structure optimization, financing model innovation, and industry trend prediction.