The Finance Problem Research Of The Thrrough Traneportation Stock Ltd Co

The ChengDu through transportation industry stock Co.Ltd is a middle-sized enterprise, its core business is passenger carrying, at the same time, it also does other businesses such as cargo and gathering packing logistics, container transporting, traveling, car leasing and other relevant businesses.This paper has analyzed the competition environment of transportation industry as well as the advantage and disadvantage of all branches and joint ventures. According to further analysis of the balance sheet, cash flow and the performance of the company, we can draw the following conclusions: For the strong dependence among the core businesses, the company faces the development bottleneck, and what is more, this has threatened the main businesses. The profit of other subsidiaries becomes less and less except the passenger transportation station, which lead to the decline of the whole company's profit. The increase of receivable and its longer payback period don't allow the company to make full use of the asset, and at the same time this leads to the unreasonable cash flow structure. The ability of obtaining cash, paying off debt and continual development is also on the decline. In a word, the company faces a severe crisis.What's the reason? Apart from industry competition and the change of the policy, the main reason is the weakness of financial management in that corporation. Although this company has some financial management rules, such as cash management, investment control, financial budget, it does not carry out these rules very well. Meanwhile, this corporation lack strategy goal and they don't know who should be responsible for the investment. The system that profits index sign manage with duty have many irregularities, their investment goal is ambiguous, and they haven't controlled the receivable very well. These lead to less cash and more receivable, and the profit of the projects is not very good. Finally, this company doesn't construct their core business, and at the same time they doesn't diversify their investment very well.In order to adapt to fierce competition, enhance the company's competition ability, we have to change the current financial management system, optimize it and strengthen its financial supervisionAccording to the above analysis and the theory of economics and financial control, the author want to optimize and reconstruct the financial control system. The management committee should take the following steps: Improve the evaluation mechanism of the company; strengthen the function of the clearing center, enhance the receivable management and the control of the cash flow; gradually formation the investment system of the item deliberation, supervision and evaluation; restructure financial management system ,construct overall budget rules; build up financial information system.