BYD's debt ratio has attracted attention, but its actual operations are stable

Recently, BYD's debt ratio has attracted widespread attention from the market. According to the 2024 semi-annual report, BYD's total debt is 531.633 billion yuan, and its asset-liability ratio is 77.47%. However, this ratio is at a medium level in the automotive manufacturing industry, and most of the debt is interest-free debt, mainly including unexpired supplier payments. In addition, BYD's R&D investment and sales performance have performed well. In the first three quarters, the cumulative R&D investment reached 33.319 billion yuan, a year-on-year increase of 33.6%, and sales also achieved rapid growth. Therefore, despite the high debt ratio, BYD's actual operating conditions remain stable.