Analysis On The Profit Quality Of Chang'an Automobile

The concept of economic globalization has promoted the vigorous development of enterprises in various countries.As the second largest economy in the world,China's domestic capital market has been expanding,the number of listed enterprises has been increasing year by year,and the investment enthusiasm of investors has reached an unprecedented new height.The authenticity and effectiveness of investment information is crucial for them.However,in recent years,listed companies frequently falsify accounting information,falsify financial data and make up profits in the investment market,the most serious of which is the false report and falsification of the profits of enterprises.This behavior not only greatly strikes the enthusiasm of investors,but affects the healthy development of enterprises to some extent Financial risk of the enterprise.Therefore,it is urgent to expand and improve the existing evaluation methods and build a more scientific profit quality evaluation system.As an important part of China's industrial development,automobile industry has contributed a lot to the growth of China's total economy since the founding of the people's Republic of China,and also played a key role in the development of modern economy.In recent years,due to the concept of ecological construction and the improvement of energy conservation and emission reduction standards,consumers' demand for automobiles has decreased.At the same time,the serious traffic congestion in the city,the maturing of the public transport system and the rising oil price have led to a sharp decline in the sales volume and profit level of the automobile industry since 2018.Therefore,it is particularly important and critical to make a reasonable evaluation of the profit quality level of the automobile industry in China and put forward corresponding improvement measures.Starting from the automobile industry and based on the theoretical basis of profit quality,this paper selects financial indicators from the aspects ofprofit stability,growth,profitability,cash security and safety security,extracts representative common factor variables from them by principal component analysis,establishes an evaluation model,and ranks and discusses 35 automobile listed companies in China by using the model system On the vertical comparison,the position of Chang'an automobile industry is clear.Subsequently,the financial data of Chang'an Automobile in the past five years from 2014 to 2018 is selected to analyze and describe the current situation horizontally.It is found that the current performance of Chang'an automobile is poor in terms of profit growth and profitability,and it is also lack in terms of stability and cash security,which reflects the business situation and debt paying ability of the enterprise.In terms of external environment,it is mainly due to the adjustment of national economic policies,the first reduction of automobile market sales in 2018,the challenge of transformation and upgrading faced by the industry,and the overall development is limited.From the internal analysis of the enterprise,the market competitiveness of the independent brand of Chang'an automobile is weak,and it relies too much on the joint venture,while the price of the joint venture brand keeps decreasing,resulting in a sharp reduction in profits.The common influence of internal and external environment has led to the decline of various profit indicators and the reduction of profit quality level of Chang'an automobile.Based on this,this paper puts forward the corresponding development suggestions,such as improving the strength of independent brand research,strengthening the competitiveness of the main business market,promoting the implementation of emerging business and vigorously promoting the talent training plan.This paper hopes to provide some relevant experience for other enterprises in the industry while promoting the company's profit quality level through the specific analysis of Chang'an automobile.