Research On Financial Risk Of Listed Airlines In China

Financial risk is a common problem of listed companies,which will affect the production and operation of the company.There is no lack of relevant research in the financial field,such as capital structure theory,financial distress theory,etc.With the development of the capital market registration system,regulators and investors are paying more and more attention to the financial risk of listed companies.Aviation industry is the basic industry of China’s economy and is crucial to the development of social economy.However,airline companies are generally asset-heavy operation mode with high financial risks.Especially after the outbreak of COVID-19,the aviation industry has been severely impacted and the financial risks have further increased.Therefore,it is increasingly important to effectively identify and prevent the financial risks of airlines.In order to identify the financial risk of the airline,this paper constructed the financial risk evaluation model,the data from the annual report of listed airlines in2019,by using the Z score model and factor analysis method,research shows that most of the airline’s financial risk is higher,the main existing debt paying ability is poorer,lack of profitability and polarization between airlines,is larger,the difference of the financial situation in accordance with the two models of scores for airlines to sort,the results are consistent,the lowest score hna holdings are implementing delisting risk warning in two years later,the side effect of the model is proved.Then,in order to further analyze the specific sources and trends of financial risks,the financial ratio index from 2016 to 2019 is selected to analyze the ability of airlines in five aspects,namely,debt repayment,operation,profit,growth and cash flow.The research shows that airlines generally have the problems of weak asset liquidity and continuous decline in profitability.In addition,it also analyzes the risks of interest rate,exchange rate and jet fuel fluctuation of airlines,and the research shows that the operating performance of airlines is greatly affected by these external factors,especially in 2017 and 2018,which greatly increases the operating costs of airlines.To explore the airline is affected by the epidemic degree,combining with the aircraft company deals with data disclosed in 2020 and half annals is analyzed,the study found that the airline in order to cope with the impact,widely expanded the scale of the debt financing,characterized by the increase of monetary fund subjects,but different airlines,financing,financial condition good airline asset cashability is stronger,so generally short-term financing ways,such as short-term loans and the issuance of short-term financing bonds;The airlines with weaker financial conditions have adopted both short-term financing and increased long-term financing,which generally carries higher interest rates and increases the financial burden.Next to the China international aviation company as a case,through financial statements analysis and dupont analysis to research the company’s financial risk,smaller studies have shown that the company’s solvency risk,asset turnover capacity has increased,but higher costs lead to decline in profitability,and also analyses the companies affected by the factors such as interest rates,exchange rates.Finally,in view of the main financial risk problem airlines,respectively,puts forward Suggestions to prevent from the external factors and internal factors,such as for interest rate,exchange rate hedging risks are reasonable,special savings funds in advance to cope with sudden public health incidents,maintain reasonable financing structure,the development of multi-channel financing,the monitoring mechanism of financial risk.