Quality Analysis Of Current Assets On China's Listed Companies In The Automotive Industry

Liquidity management is the production of an important part of business activities; current assets turnover is a basis for enterprise survival and development; liquid assets in total assets of an enterprise occupies an important position. General business failure or financial crises of the company, is usually from the mismanagement of the beginning of current assets; the level of liquid assets affect the quality of corporate information disclosed in the financial statements, corporate assets, an important aspect of quality performance. With our modern industrial system of continuous improvement, the automotive industry as a pillar industry of national economy has become increasingly important, not only because of the automotive industry on a complex network of upstream and downstream enterprises, but also because the auto industry to absorb a lot of force to engage in the automobile industry of work.Based on a theoretical summary of the asset quality and assets, there is quality evaluation index system on current assets. Quality of current assets is from the four aspects of evaluation:the asset quality's existence, efficiency, profitability, safety. The existence of the current assets quality is the rate of current assets, inventories current assets ratio, current assets accounted for two funds rate and capital return rate and abnormal asset accounting current assets ratio. The efficiency of the current assets quality can flow through asset turnover, inventory turnover, accounts receivable turnover and operating cash flow and operating profit ratio. The profitability of the current assets quality can be achieved by gross profit margin, current assets net margin. The security of the current assets quality can be achieved by the current ratio, quick ratio, cash ratio, cash flow analysis of dynamic debt ratio.Based on the quality of the obtained liquid assets evaluation system, the study of current assets of the indicator data of the 19 china's listed companies in the automotive industry in the year of 2008,2009 and 2010, uses a descriptive analysis to get some conclusion:the asset quality's existence is good, the asset quality's efficiency is not good, the asset quality's profitability and safety is poor. The use of principal component analysis gets some conclusion that principal component analysis obtains good results, the evaluation index system for the interpretation of current assets is good and reasonable; it also reaches general scores of 19 listed current assets of the company for three years and reaches the ranking of the scores. It gets to the conclusion:the first ranking list of these companies is stable, however the last rank list is volatile.