Financial Analysis Of Zhongtong Bus

With the popularization of high-speed rail,airplanes,and private cars,travel modes have gradually diversified,and are no longer limited to long-distance travel by train or passenger cars as before,and ordinary passenger car transportation services have been greatly impacted.At present,the relevant subsidies for the passenger car industry have been gradually reduced,coupled with rising costs,the revenue and profits of passenger car companies have been further reduced.Declining market demand and changes in related policies will inevitably affect the development of the bus industry to a certain extent.Therefore,it is particularly important for bus companies to explore new development paths.As one of the domestic bus manufacturing companies,Zhongtong Bus is also facing challenges.Through comparative analysis with Yutong Bus,a benchmark company in the domestic bus manufacturing industry,it can clearly find its own shortcomings and existing gaps.The development provides certain reference opinions,and also serves as a reference for the development of other bus companies in the industry.The thesis takes Zhongtong Bus as the analysis object,and uses industry leader Yutong Bus as the comparison standard,combing domestic and foreign literature and related theories as the basis.Using the financial statement data of Zhongtong Bus and Yutong Bus from 2015 to 2018,using financial comparison Relevant methods of analysis,comparative analysis of the financial statements,profitability,cash creation ability,debt repayment ability and growth ability of Zhongtong Bus,combined with DuPont analysis system,found possible financial problems of Zhongtong Bus,and proposed relevant suggestions.Through a comparative financial analysis of Zhongtong Bus and Yutong Bus,it was found that the overall financial performance of Zhongtong Bus showed a gradual decrease trend and was always lower than that of Yutong Bus.It appeared in profitability,growth ability,cash-generating ability and debt-paying ability different degrees of decline.Zhongtong Bus mainly has the following four problems: first,the decline in profitability;second,insufficient growth ability;third,low receivables recovery rate;fourth,increased financial risks.In view of these existing problems,this article mainly puts forward the following suggestions: exploring new ways of profit growth;strengthening market development;strengthening accounts receivable management;and improving the ability of corporate financial risk early warning.