The Financial Performance Evaluation Of The Local Government Financing Platform Company

Local government financing platform companies build public infrastructure or invest in social public welfare projects by lending loans from financial institutions.In September 2014,the NO.43 proclamation made it clear that they will restrict the development of local government debt and the Ministry of Finance issued the Announcement No.87 raised again that the principle of fair transparency should be the principle of local government in the purchase of government services.Policy changes have forced platform companies to achieved self-management and self-sustaining and complete the task of infrastructure construction.More importantly,it is necessary to evaluate its financial performance.This paper takes XX city investment company(100% state-owned holding)as an example.This paper will build a financial performance evaluation index system to help investors more clearly understand the company's comprehensive financial performance.The index system of financial performance evaluation consists of profitability,operating ability,debt paying ability,development ability and public welfare ability.The financial performance evaluation index system evaluates the overall financial performance of the company,and finds out the problems of the company in financing channels,main business revenue sources and operation capacity fluctuations,and puts forward reasonable proposals for the problems,and reasonable proposals include expanding financing channels,mining operational resources and strengthening working capital management.