Research On The Profitability Of FN Financial Leasing Companies

Financial leasing originated in the 1950 s.After more than half a century of development,it has developed into a link between financial capital,commercial capital and industrial capital in the global capital market.It plays a vital role in the national economic development of all countries.At present,in developed countries,leasing is the second largest financial instrument after bank credit,and together with banks,insurance,trust and securities,it constitutes the five pillars of finance.Financing lease is an important carrier to connect the real economy with the virtual economy,and it is also a natural channel to connect the real economy.Since 2018,facing the downward pressure of the economy under the complex situation,the competition in the financial leasing industry has become more and more fierce,and the test of the financial leasing company is also growing.In order to improve the sustainability of the company,it is necessary to study the profit quality of the financial leasing company.Only by studying the indicators of the profit quality of the financial leasing company and finding out the reasons for the change of the profit,can we provide the reference for the management of the company to analyze the performance,clearly and concretely put forward the strategy of the company's operation and development,so as to improve the company's market competitiveness.Therefore,it is more and more important to study the profit quality of financial leasing companies for their sustainable development.This paper takes FN financial leasing company as the research object,starts with the definition of financial leasing and profit quality,introduces the evaluation method of profit quality,analyses the particularity of profit quality analysis of financial leasing company,and based on Du Pont analysis method,combines the stability,growth and cash security of profit quality,carries out the profit quality of FN financial leasing company from 2014 to 2017.Through analysis and research,it is found that the profit quality of FN financial leasing company has some problems,such as the uncertainty of macro-environment,the single income of main business,the imperfect credit risk management mechanism,the lack of cost and expense management control ability,and the rapid expansion.After finding out the causes of the problems,we should formulate a scientific and rational company development strategy,establish and improve the credit risk management mechanism,and implement cost leadership.Four aspects of strategy and emphasis on cash flow management are put forward to improve the profitability of FN financial leasing company.This paper attempts to construct a Du Pont-based analysis framework for the stability,growth and cash security of earnings quality.Four suggestions to improve the earnings quality of FN financial leasing company also have some practical guiding significance.