| The expressway industry is very important to economy and social development.It has the characteristics of large investment scale,long payback period,high debt ratio,single source of income.The expressway company is under enormous financial risk in the process of construction and management.Existing researches are mostly on listed expressway company.Not much research of financial analysis and risk control has been done on provincial expressway company founded by provincial government.However,provincial expressway company took on most of the financing and construction responsibility of expressway programme.It's necessary to do research on provincial expressway company and provide suggestion on improving administration as well as debt paying ability.Fujian Provincial Expressway Co.Ltd.(FJEC)build and manage most of the expressway in Fujian as a regional monopoly enterprise.The analysis on FJEC is based on annual report of Fujian Provincial Expressway Company from 2011 to 2016,with Harvard analytical framework..By analysis,we found that it has special depreciation method of fixed asset.Besides,FJEC has advantages such as outstanding main business,high gross profit rate,high quality revenue,stable cash flow,etc.It also has problems such as limited source of income,low profit,low efficiency on capital.Expressway industry shares characteristics like high financial risk,bad liquidity,large debt servicing pressure.Most financial ratio of FJEC are parallel with comparable company of the same industry,except for finance charge,which is higher than comparable company.Considering the present corporate strategy,we suggest that FJEC control liability with interest and optimize the financing structure to lower finance expense,and raise more fund to develop relative diversified business in order to improve profitability as well as self-restoration ability.Also,we suggest government strengthen aid measures when necessary. |
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