Study On Financial Impact Of COVID-19 On Songcheng Performing Arts Company And Countermeasures

Since the reform and opening up,China’s economy has developed by leaps and bounds.With the improvement of people’s living standard,people pay more attention to the promotion and enjoyment of the spiritual world.In leisure and entertainment,tourism is the first choice of travelers.Tourism has gradually become the pillar of China’s tertiary industry and made important contributions to the development of China’s national economy.At the end of 2019,the COVID-19 epidemic broke out all over the world,which caused the tourism industry to press the pause button.According to the statistics of official website of the National Bureau of Statistics,the total number of domestic tourists dropped from 6.01 billion in 2019 to 2.88 billion in 2020,and the total tourism expenditure dropped from 5.7 trillion yuan in 2019 to 2.2 trillion yuan.According to the People’s Court Announcement Network,more than 120 cultural and travel enterprises have gone bankrupt in 2020,accounting for about 15% of the total.Thus,the tourism industry suffered heavy losses in the epidemic.In this paper,Song Cheng Performing Arts Development Co.,Ltd.(hereinafter referred to as Song Cheng Performing Arts),a listed tourism company,is selected as the key research object.Based on Du Pont analysis system,financial analysis methods(including financial statement analysis,structural analysis,comparative analysis,trend analysis)are used to make a comparative study on the changes of the company’s financial and operating conditions.Analyze the financial impact of the epidemic on the company from four aspects: profitability,operating ability and investment,debt paying ability and financing,and cash flow.Summarize the company’s financial problems exposed in the context of the epidemic.Including the decline in operating income,a greater decline in profits,insufficient cost control,low asset turnover rate,low return on investment,increased interest-bearing liabilities and tight operating cash flow.According to the problems of financial analysis,this paper puts forward the countermeasures and suggestions that the company can take from the two levels of the company and the country.Including diversification,scientific and technological innovation,cost reduction and efficiency increase to increase operating income and profit,improving asset utilization efficiency and prudent investment to improve the company’s asset management ability,reducing the company’s financial risk by improving its own reputation and Strengthen the construction of financial risk professionals,improving cash flow management level by strengthening operating cash flow management and human resource management,and making good use of national preferential policies by strengthening cooperation between government,enterprises and banks.To sum up,through the research of this paper,it is hoped that it will help the company to improve its financial risk prevention and control ability and management ability when facing similar public health emergencies in the epidemic situation or in the future,and it will have certain reference value for other tourism companies of the same type.It will help the construction of tourism and the development of tourism economy after the epidemic.