Research On The Evaluation Of Financing Efficiency Of Airlines In China

The report of the 19 th National Congress of the Communist Party of China clearly puts forward the goal of building China’s strength in transportation,which has risen from the industry vision to the national strategy.As an important part of China’s comprehensive transportation system,the civil aviation transportation industry has shown a rapid development trend in recent years.Civil aviation transportation industry is a capital intensive industry.As a significant part of civil aviation transportation industry,airlines generally have the characteristics of large capital needs,low profit margin,high risk and so on.In order to maintain sustainable and stable development,airlines need a large amount of financial support,and financing is the focus of their long-term attention.The high financing efficiency of airlines is the key to attract investors,improve financing competitiveness and financing success rate in the market capital competition.Therefore,the research on the evaluation of airline financing efficiency is particularly important,which will be helpful for Chinese airlines to recognize the short board in their financing process,improve the financing efficiency,and achieve sustainable and stable development.First of all,this paper explains the relevant concepts and theories of airlines’ financing efficiency evaluation.Then it analyzes the status quo of financing efficiency evaluation of domestic and foreign airlines,and finds out the problems in the status quo such as lack of a unified conceptual basis for the evaluation of financing efficiency of airlines,inconsistency in content and index standards of airlines’ financing efficiency evaluation,and lack of a financing efficiency evaluation system specifically for the characteristics of airlines and so on.Thirdly,based on the characteristics of China’s airlines,an evaluation system for the financing efficiency of China’s airlines is constructed,which mainly includes the goals and principles,evaluation content,evaluation index system and evaluation model.Finally,the paper uses entropy evaluation method to analyze the financing efficiency of China’s airlines.The results show that: there is a large gap in financing efficiency between Chinese airlines;private airlines have higher financing efficiency than state-owned airlines;the four indexes of interest coverage ratio,net profit margin on fixed assets,fixed assets turnover and receivable turnover ratio have a greater impact on the financing efficiency of airlines.Based on empirical research results,the author puts forward suggestions to improve the financing efficiency of Chinese airlines such as improving the airlines’ ability of resist risks.