An Empirical Study On The Financial Competitiveness Of Jianghuai Automobile Co., Ltd.

Following China’s entry into WTO in 2001, the production and sales of automobiles in our country rose year by year. With strong development momentum, automobile industry has already become the pillar industry of our country. Along with the unveiling of automotive industrial policy in 2004, the automobile industry in our country has entered the critical period of transformation, upgrading and strategic adjustment. Even so, our country is just a big country not a great power in terms of automobile. The self-owned automobile brands in our country are generally faced with some problems, including low brand recognition degree, small production scale, low profit margin and the like. Jianghuai Automobile Co., Ltd.,(hereinafter referred to as "JAC"), as an epitome of self-owned automobile brands in our country, also faces the said problems. Since financial management acts as the basis for company operation, then to explore how to foster the company’s financial competitiveness through the combined effect of financial resource and financial capability can pose practical significance in improving the overall competiveness of JAC and facilitating its future development as well.Based on the research results of core competitiveness of certain company by scholars from home and abroad, this paper will focus on the financial competitiveness of JAC. First of all, through a probe into the theories regarding financial management and core competitiveness, a clear understanding of the connotation, characteristics and formation mechanism of financial competitiveness of company. Combined with the characteristics of automobile industry, a set of evaluation index system is devised for financial competitiveness; then, this paper analyzes the development status of JAC from four aspects, including industry environment, company profile, operation condition and financial index. Meanwhile, by applying the factor analysis method, it ranks the financial competiveness of 73 listed companies in the automobile industry. Here is the result of the analysis:1, JAC has relatively poor profitability and solvency, thus possessing certain financial risk; 2, JAC has relatively strong operation ability and its capital turnover is in good condition; 3, JAC has relatively good development ability and has certain potential for future development. Finally, based on the evaluation results, this paper puts forward suggestions for enhancing JAC’s financial competitiveness from four aspects, including profitability, operation ability, development ability and solvency.