Research On Improving Financial Quality Of YD Holding Company

With the massive growth of China’s express demand,the express service industry has become a major industry in China.The country has also issued a number of policies to encourage the development of the express service industry,and a large number of emerging express service enterprises have emerged as the times require.In the context of fierce competition in the industry,the financial quality of express delivery service enterprises determines the size of their development potential.As a local express delivery service enterprise,YD Holding Company has maintained stable development since its listing,but its profits have significantly decreased in the past two years.Therefore,this article takes YD Holding Company as a case company to analyze the relevant financial quality of YD Holding Company,identify existing financial quality issues,and provide certain improvement suggestions,with a view to providing reference for YD Holding Company and other logistics service enterprises in the same industry,Improve the comprehensive competitiveness of enterprises in the context of rapidly changing markets.Based on a review of relevant literature at home and abroad,this article analyzes the express delivery service industry in which YD Holdings operates.The financial quality of the express delivery service industry is mainly reflected in the high proportion of accounts receivable and bad debts in the express delivery service industry;Cost management has a significant impact on the profitability of express delivery service enterprises,and operational capability is quite important for express delivery service enterprises.Then,based on the theory of financial quality analysis,a comprehensive analysis is conducted on the current financial quality status of YD Holdings from four perspectives:asset quality,profit quality,cash flow quality,and capital structure quality.Comparative analysis and case analysis methods are used to carry out the analysis.Based on the analysis,YD Holdings’ listed companies in the same industry are selected,and the scores are calculated using factor analysis method to rank the 17 companies,To comprehensively rank the financial quality of YD Holdings based on this score.Finally,through the evaluation results,it was found that YD Holdings’ financial quality has problems such as insufficient utilization of financial leverage,high cost rate of main business,and significant impact of external environment on main business income.The analysis found that these problems are caused by the single financing method of the enterprise,the high transportation costs caused by the franchise model,and insufficient customer loyalty.This article proposes suggestions to improve financial quality by making reasonable use of financial leverage,improving internal management,and shaping corporate image in response to the problems existing in YD Holding Company.