Chang De City Tobacco Company Financial Performance Management Research

The tobacco business is a state monopoly industry with the monopoly franchise system in China. With the commitment to tobacco industry honored after China’s accession to the WTO, the perfection of modern enterprise system and the deepening of the tobacco business reform, the advantages of tobacco business have been gradually receded. As a single market operator, the tobacco business company is faced with fierce competition. As the key point of business management, financial performance management is very important to the realization of enterprise strategic target. However, financial performance management always is a hard problem.Firstly, this paper introduces the background and significance of financial performance management research, and then puts forward the research situation about financial performance management both domestic and overseas and raises the ideas, methods and the research content. Secondly, this paper introduces the theoretic basis of financial performance management and the present development situation of Changde Tobacco Company. It points out financial performance management is the obvious and profound problem in the process of development and also the most important and urgent problem. On the basis of financial performance management theory and through first-hand information and interviews and questionnaire survey, this paper looks for problems and insufficiency in existing management system and analyzing the reasons. After determining the direction of improving the performance system, it designs the financial performance management system and analyzes the company by finance ratios which are used to evaluate different facets of a company’s performance and condition:internal liquidity, growth capacity, operating efficiency, debt paying ability and the ability of getting cash. Finally, Du Pont Analysis is used to analyze the company financial quality and judges the company financial level and the performance of operators.