Research On Financial Management Capability Evaluation System Of Yushen Energy Company

Since2012, the overall descending of the coal industry has brought a hard hit to Yushen Energy Company. With enterprise profits plummeting down and financial risks getting severe, it's of great urgency to improve its financial management capability.For this reason, based on the systematic review upon the present status of related researches home and abroad, this paper employs the methods of combining theories and practices as well as qualitative and quantitative analysis in studying the financial management capability evaluation system of Yushen Energy Company. The studies and conclusions are mainly as follows:(1) Literature Analysis Method is employed to systematically sum up the related literature of the enterprise financial management capability evaluation. It is pointed out that financial management capability is different from financial capability and that its evaluation should be a whole-process one based on the financial management framework and core processes.(2) Through Logical Deduction Method, the financial management 6x4 frame model in the financial management practice is constructed to identify the core processes of financial management and refine the 6 major value driving factors and 4 basic supporting conditions. By basing the financial management evaluation index system on this, 10 key primary indicators are constructed and 42 secondary indicators are designed according to the main activities of primary indexes. Thus, the financial management capability evaluation index system of Yushen Energy Company is formed.(3) Constructing the financial management capability evaluation model of Yushen Energy Company. Expert Scoring Method is used to determine the index weight. According to the maturity of the financial management development, the index evaluation standard is determined to define 5 maturity levels: initial level, developing level, standard level, optimal level and leading level. It also provides the Evaluation Scoring Method.(4) Evaluating the financial management capability of Yushen Energy Company,analyzing the evaluation results in detail and putting forward suggestions for improvement. In general, the financial management capability of Yushen Energy Company is developing from level 2(developing level) to level 3(standard level). By analyzing the evaluation results in details, it is pointed out that the financial management of Yushen Energy Company should be conducted in 4 aspects: the perfection of the basic function of financial management during theinfrastructure construction period, the focus of shaping financial value management capability, innovation management mode and innovation financial management means. In these ways, more scientific and advanced management system would be constructed for future management to improve its own financial management capability.