Analysis On Debt Paying Ability And Profitability Of Chinese Foreign Trade Listed Enterprises

The international competition is more and more intense, and market information is changing every minute, which makes foreign trade enterprises face increasingly severe challenges. The national foreign trade enterprises must seek ways to improve competitiveness if they want to survive and develop in so fierce competition environment. Debt paying ability and profitability are two important aspects of competition ability. Foreign trade listed companies are representatives in the foreign trade industry. There must be important theoretical significance and reference value to the development of entire foreign trade industry to research on profitability and debt paying ability of foreign trade listed companies and how to improve the abilities.This paper first systematically concludes and summarizes the research achievements about enterprise debt paying ability and profitability, and points out the weakness of current research. This paper theoretically analyzes related concept, index and influencing factors of debt paying ability and profitability on the basis of summarizing current research, which lays foundation for the further research on debt paying ability and profitability of foreign trade listed enterprises. After theoretical analysis, this paper picks22foreign trade listed enterprises, and uses clustering analysis and factor analysis to research their debt paying ability and profitability during2007and2011. The empirical analysis conclusion is that about debt paying ability, foreign trade enterprises should focus on short-term debt paying ability such as current ratio, quick asset ratio and cash ratio, and meanwhile about profitability, foreign trade enterprises should focus on net profit margin on sales, net interest ratio, ratio of profits to cost, and operating profit ratio. Another conclusion of the empirical analysis is the debt paying ability and profitability rankings of the22foreign trade listed enterprises. Zhongcheng Shares, Shengda Shares and China High-Tech are at the top lists of debt paying ability ranking, and Liaoning Chengda, Zhengjiang Dongri and Guangdong Mingzhu are at the top lists of profitability ranking. Finally this papers gives some suggestions about how to improve debt paying ability and profitability and to how strengthen the benign conduction between debt paying ability and profitability.