Research On Financial Performance Evaluation Of China's Aviation Listing Corporation

In recent years,China's aviation industry has developed quickly,so problems have become increasingly prominent.According to incomplete statistics,the asset liability ratio of China's aviation industry is over 80%.China's aviation industry is meeting with several problems as below: debt risk,low profit risk,interest rate and exchange rate risk and other issues.All these problems have brought heavy pressure to airline business' s future development.Also,because of the high cost of fuel,aviation industry financial risk gradually increased.In order to analyze the financial risk of aviation industry,the paper establishes the financial risk evaluation model.As China Eastern Airline is one of China's three major state-owned airlines,its financial risk has representative significance in the aviation industry,so the author takes the China Eastern as a case.The article is based on the environment of aviation industry nowadays,and the paper establishes the financial risk evaluation model.In the end,the paper did an in-depth analysis of the eastern financial situation,discussed the ever-changing external environment and how to prevent financial risks,so as to realize the profit maximization.The paper applies the knowledge of the risk management and financial management to analysis,including accounting,management and other theoretical knowledge.Based on a comparison of various methods of doing financial risk,the financial risk analysis of two methods is adapted to the aviation industry: Factor analysis method and Entropy method.Then the paper two established two evaluation models of China's aviation industry based on the two methods.And according to the two evaluation models of China's aviation industry,the paper did a risk ranking of the listed companies with 29 companies included.As the results under the two models are likely to each other,the effectiveness of the financial risk evaluation of Factor analysis and Entropy method model is reliable.Finally,the paper uses the method of case analysis,taking Eastern Airline as an example,analyzes its financial risk from four aspects: debt risk,interest rate risk,the interest rate and exchange rate risk.The paper also puts forward four kinds of measures to avoid the financial risk which includes adjustment of financing and debt structure,controlling fuel costs,optimizing the company's debt currency structure,carrying out interest rate hedging transactions,all these measures will benefit the aviation industry risk prevention.