Research On The Impact Of Government Subsidies On Financial Performance Of Y Automobile Company

In recent years,with the profound development of China’s market economy,the level of domestic automobile industry is also rising,At the same time,it also leads to the problems of emission pollution and resource shortage.New energy vehicles have the advantages of replacing oil by electricity,energy saving and emission reduction,which can promote the green transformation of transportation field and the sustainable development of automobile industry.Therefore,new energy vehicle industry has ushered in unprecedented opportunities and achieved remarkable results in the market.For these achievements,we can’t do without the help of various policies of our government,including subsidies,license plates,preferential restrictions on travel,policy intervention in the fields of passenger cars,special vehicles and so on.However,the early policy dividend has prompted a large number of new energy automobile enterprises to make money from policy,and is chaos in the industry,such as overcapacity,fraudulent subsidies and so on.With the decline of government subsidies,the financial situation of many automobile enterprises has been plummeting.Whether government subsidies can play an expected part in the financial performance of enterprises has aroused widespread concern in the industry.So further research of the relationship between government subsidies and financial performance of new energy vehicle enterprises is of great significance.This paper first introduces the current development of new energy vehicle industry and the evolution process of government subsidy policy in recent years.Then Y automobile company is selected as the research case to sort out and analyze its operation status and compensation situation in recent five years,and evaluate the financial performance status of Y automobile company by using factor analysis method,and preliminarily judge that the government subsidy has apparent correlation with the enterprise’s comprehensive financial performance.Secondly,through the correlation analysis method,it verifies the correlation degree of different types of government subsidies on the comprehensive financial performance of enterprises.furthermore,starting from the specific financial indicators of Y automobile company,through the method of eliminating the amount of government subsidies,this paper analyzes the specific impact path and degree of government subsidies on the enterprise’s profitability,solvency,operation ability and growth ability,and gives a profound analysis of the causes of these effects.Based on the analysis,the following conclusions are obtained: on the whole,the subsidies given by the government can promote the operation performance and financial performance of Y automobile company in the short term.However,in the declining phase of government subsidies,the financial performance of the company declines in an all-round way,indicating that the company still relies on government subsidies and has some problems in its own operation.Finally,combined with the financial problems of Y automobile company,this paper puts forward some corresponding suggestions on how to improve the financial performance of the company in the future.