Research On Financial Management Of J Automobile Sales Company Based On Value Creation

In 2018,China's auto sales market showed negative growth for the first time.Under the circumstance of oversupply,the auto sales market changed from seller's market to buyer's market.In recent years,with the change of consumer groups and consumption views in the automobile industry,as well as the impact of the e-commerce industry on the automobile 4S stores,the automobile sales industry has seen a decline in profits or losses.However,as a real enterprise,the purpose of automobile 4S stores' operation and investment is to achieve a return higher than the cost of capital.In such an adverse environment,how to go upstream and achieve a breakthrough in performance? The 4S stores need to have a decisive strategic management and a down-to-earth pragmatic behavior.To be specific,enterprises should change the overall strategy from sales orientation to after-sales service orientation to win the main after-sales business.In addition,extensive management should be transformed into fine management to realize profit by increasing revenue and reducing expenditure.Good financial management can solve the above problems,and create more value for the automobile sales enterprise can also let it go further.J company includes four 4S stores,which specializes in brand automobile sales and after-sales maintenance services.Due to the weak agency brand,the industry environment has changed dramatically in 2018.The adjustment of national policies,extensive internal management and financial management of the company also have a series of problems,leading to more and more operational contradictions.This paper based on the analysis of the current financial situation of J company and finds the following five major problems: First is the organizational structure of the company is deficient,and the professional quality of financial personnel is low;Second,it fails to make scientific and reasonable investment and management;Third,the financing method is single;Fourth,the working capital management is unreasonable,the budget management is too formalized;Fifth,the income distribution decision-making is not perfect.Through the analysis of the internal environment of J company and the environment of the automobile industry,the financial management problems of J company include three reasons.First,the sales of passenger cars are in an adjustment period,and the overall sales decline.However,the rapid expansion strategy adopted by J company blindly chooses to invest as an agent for automobile brands.Second,the current KPI performance assessment index system of company J does not include inventory management in the assessment index.The managers of company J calculate and withdraw performance pay according to the accounting profit created in the current year.Unreasonable performance management causes the managers to ignore the future value of the company for short-term accounting profit.Third,the automobile aftermarket is the blue sea of profit source for 4S stores.The size of the whole automobile aftermarket is increasing every year,while the after-market income of J company is decreasing,without value-added management of the automobile aftermarket.Based on the analysis of the above problems,this paper combines theoretical research to the J company development present situation,based on the viewpoint of value creation,further discusses the financial management problems of J company and optimizing countermeasures,including based on value creation reasonably adjust organization structure and the finance team personnel and reconstruction of value creation of financial investment management system,broaden the financing channels,strengthen the inventory management and cash flow management,make the income distribution scheme based on value creation,to establish the financial budget system and control system based on value creation;Facing increasingly fierce competition,J company can strengthen financing capacity,improve operating fund management,reasonably control cost and expenditure,realize fine control of profit,realize enterprise value and enhance market competitiveness through rational investment.At the same time,it is hoped that this paper can inspire automobile 4S stores to continuously improve the level of financial management and enterprise value.