Research On The Improvement Of Financial Ability Of Hunan Oil Pump Company From The Perspective Of Economic Added Value

Since the auto parts are the foundation of the development of the automobile industry,the auto parts industry and the automobile industry are mutually promoted and developed.Hunan oil pump company is an automotive oil pump manufacturer where the development of the engine and pump industry is closely linked to the automotive industry.For one thing,due to the huge development potential of automobile market and auto parts as well as and the steadily increasing scale of the auto parts industry,Hunan oil pump company should seize the opportunity of national automoblie market development.For another,it should recognize that there is still a large gap between China’s engine pump industry and abroad although domestic engine pump industry has entered into the high-end multi-cylinder engine pump field for truck and engineering machinery.Based on the Economic Value Added theory,this paper analyzes the current operation status and financial capacity of Hunan oil pump company of which economic value added in 2017 and 2018 is calculated by the financial data of Hunan oil pump from 2016 to 2018.The research results show that the economic value added in 2018 is much lower than that in 2017.According to the EVA calculation results,combined with the internal relations of development strategy,financial strategy and financial ability,on the one hand,the reasons for the change of economic added value are analyzed from the aspects of development strategy and financial strategy,on the other hand,the problems and reasons of its financialability are analyzed from the perspectives of solvency,profitability,operation ability and growth ability.According to the problems existing in the financial capacity of Hunan oil pump company,based on the current financial situation of Hunan oil pump company,the paper comprehensively considers the influence of development strategy,financial strategy and financial capacity on EVA,and takes the adjustment of development strategy as the starting point to guide the company to carry out the financial strategy transformation,and puts forward the promotion strategy of financial capacity from the perspective of debt paying ability,profitability,operation ability and growth ability。(1)Strategies for improving solvency:changing the way of debt financing and increasing the amount of equity financing.(2)Strategies for improving profitability: increasing product export and operating revenue;strengthening internal management and reducing cost;activating stock assets and improving profitability quality.(3)Strategies for improving operational capacity: strengthen the management of accounts receivable,reduce capital occupation;strengthen the management of fixed assets,and improve production capacity.(4)The strategy of improving the growth ability: strengthening the construction of R &D team,improving the technical level;changing the incentive mode,improving the operation ability.The adjustment of development strategy and the transformation of financial strategy have pointed out the direction for the improvement of financial capacity of Hunan oil pump company,and also helped to promote the sustainable and healthy development of the company.