| Because of this long industry chain, high correlation and great consumer market, the autoindustry has been one of the most important pillars to the China’s economy. However the autoindustry has been trapped in overcapacity since2011, most vehicle corporations began to contendfor market with the price reducing. As a result, the profit level of vehicle industry started todecline. Under such condition, the Jiangling Motors Company decided to explore the way ofinnovation with full of effort. In order to probe the inner causes of keeping success, this papertakes JMC’s income quality as a target for research. We hope this paper’s findings will do relatedvehicles a favor.Firstly, this paper analyzes the JMC’s income quality from three aspects, including theforming process of income, the construction of income and cash guarantee of income. Throughanalysis, we find out JMC’s income quality is relatively higher. Secondly, this paper has exploredhow the political factors, industry competition and corporation govern structure do effect thequality of income. Finally, we put forward several suggestions as to how to improve the level ofJMC’s income quality.Acording to this paper’s analysis, we could draw that under the mutual influences whichcome from three aspects including policy, industry and corporation, JMC has been keepingrelatively higher income quality, reliable and true operating process, rational and stable incomingconstruction, and convincing cash guarantee degree. In order to increase the income quality ofJMC, this paper also put forward some suggestions, such as following policy strategy, stabilizingcore operation income strategy, and improving innovation capacity strategy. Not only a practicalusing of financial situation analysis theory, could this paper’s conclusion also provide relativereference for other vehicle firms. |
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