Research On Financial Performance Evaluation Of Zhong Gong Education Company

Since the 1990s,the education industry has developed rapidly due to the extensive needs of the society.Many training institutions have developed from small enterprises to listed companies.The market value of leading companies such as Good Future（TAL.N）,Zhong Gong Education（002607.SZ）,New Oriental（EDU.N）has even exceeded 100 billion.The education industry has good prospects.Therefore,understanding the financial situation of the education industry is particularly important for studying the entire education market.However,the current research on this aspect mainly focuses on strategy,marketing and policy,and financial analysis of these private enterprises is relatively scarce.Based on this,this article first introduces the development background of China’s education industry from a macro perspective,briefly analyzes the development status and future development opportunities of the education and training industry in recent years,and then looks at the financial status from a micro perspective.This paper takes Zhong Gong Education,the leading enterprise of education and training listed companies,as an example.First,it combines PEST analysis and SWOT analysis methods to analyze the political,economic,social,and technical aspects of Zhong Gong Education based on the internal and external environment of Zhong Gong Education.The macro environment,as well as the main internal advantages,disadvantages and external opportunities and threats that are closely related to Zhong Gong education.Secondly,go deep into the three financial statements of Zhong Gong Education,pay attention to the assets,liabilities,and income of Zhong Gong Education,and conduct structural analysis and trend analysis.Third,calculate the relevant financial indicators to carry out a further comparative analysis of the debt repayment,operation,profitability,and growth capabilities of Zhong Gong Education.Finally,by calculating financial indicators,using DuPont analysis method to analyze the internal relationship between indicators,so as to comprehensively analyze the financial status of Zhong Gong Education.The study found that since Zhong gong Education went public at the end of 2018,the company’s overall profitability is relatively good,operating conditions are optimistic,liquid assets turnover is stable,and profit margins are large,but sales and management expenses account for an excessively high proportion.The company prefers a highly leveraged business strategy.In the two years since its listing,the company has continuously increased leverage and overly favors short-term loans,which may cause the company to face greater debt repayment pressure in the future.The company purchases a large number of wealth management products,optimizes capital management,and brings considerable investment income to the company.From 2018 to2019,Zhong Gong Education has paid high dividends for two consecutive years.In2018 and 2019,cash dividends accounted for 85% and 72% of undistributed profits,respectively,and then borrowed a large number of loans to maintain business development.As far as Zhong Gong Education is concerned,this kind of dividend strategy with high dividends may have higher risks.In addition,focusing on the operating conditions of the first quarter of 2020 affected by the epidemic,this article finds that although Zhong Gong Education is suffering from the epidemic,its operating income has slightly decreased,but it has relied on favorable national policies,various tax reductions and government subsidies,and access to investment and financial income.Under the comprehensive influence of the company,the company still maintained an increase in the return on net assets.For a long period of time in the future,the education industry will continue to develop rapidly and will also face huge competition.This article conducts a comprehensive analysis of the internal and external environment,its own special diagnosis,and financial statements on the leading institution in the education and training industry,and reveals the operating conditions of the education industry under the influence of the epidemic through the financial statements of the first quarter of2020.Provide empirical evidence for the high-quality development of such enterprises.