Efficiency Analysis of Listed Agricultural Company Base on FIA Jian-dong ZHANG and Jian ZHANG *

Transcription

1 2018 3rd International Conference on Education and Management Science (ICEMS 2018) ISBN: Efficiency Analysis of Listed Agricultural Company Base on FIA Jian-dong ZHANG and Jian ZHANG * Dalian Polytechnic University, Dalian City, Liaoning Province, China *Corresponding author Keywords: Agricultural listed company, Operation ability, Profitability. Abstract. Based on the data of 11 agricultural products listed companies from 2011 to 2015, by using FIA(Financial indicator analysis) method, the paper analyzes deeply about the 11 agricultural products listed companies operating conditions. Research indicates: The Operation ability and Profitability of listed companies are obvious and fluctuating. Finally, according to the results of empirical analysis, this paper put forward recommendations, the practical significance that is in order to promote the efficiency of agricultural products listed companies. Introduction Agriculture is the foundation and strategic industry of our country, and the foundation of the national economy, According to the statistics, as of 2016, the total agricultural output value increased steadily, from the original yuan to yuan, the number of agricultural products listed companies rose from 2565 to However, China's agricultural products processing enterprises are facing many problems: such as such as less quantity, weak overall industry competition, low processing rate of agricultural products and so on. Therefore, this paper adopts the method of financial index analysis, taking the agricultural products listed as the research object, and using the comparative analysis method to study the financial sustainable growth, it has great practical significance to improve the competitiveness of agricultural products processing enterprises and to improve the efficiency of listed companies. Literature Review Agricultural products listed companies play an important role in agricultural development. At the same time, agricultural products processing companies are the mainstay of agricultural products listed companies, which represents the advancement of productive forces in China. Chinese scholars have used different methods to study the listed companies of agricultural products from different angles. For example, Chinese scholars Jun Kang (2016) used select China's agricultural listed companies as the research object, descriptive statistics and non-parametric test method are used to study the financial sustainable growth of China's agricultural listed companies[1]. Chinese scholars Shanshu Lv and Jiabin Yi (2012) were based on the panel data model of agricultural listed companies in China, this paper studies the growth of the listed companies, there is a significant positive correlation between the price of agricultural products and the agricultural listed companies in China[2]. Chinese scholars Yan Xiao and Jun Liu (2013) used the principal component analysis and cluster analysis to analyze the financial affairs of listed companies, it shows the development of agricultural listed companies, it directly reflects the development of agriculture in China and the growth of farmers' income, and it plays an important role in the sustainable development of agriculture and the development of national economy in China[3]. At the same time, Chinese scholar Hong Wang(2017) and Xuegong Zhang (2013) discussed the impact of specific policies on the performance of agricultural listed companies from the perspective of policy support and innovation [4,5]. The scholar Lu Ting (2014)combined with the internal financial characteristics of agricultural listed companies, this paper analyzes the impact of financial structure on the efficiency of financial governance from four aspects of capital structure, ownership concentration, 160

2 management shareholding and supervision system[6]. Chinese scholars Yingmei Gong and Yifang Zhang (2016) used the data envelopment analysis to evaluate the financial performance of 20 agricultural listed companies in 2014[7]. This article mainly selects the data of 11 listed agricultural products and adopts the method of financial index analysis (FIA), conducted in-depth analysis from many aspects, put forward some suggestions to the existing problems of listed agricultural products. Research Design Case selection and data source and case index introduction This article mainly elects 11 listed agricultural products as the research object, including Bei Da Huang Co., Ltd.(A1), Denghai Seed Co., Ltd.(A2), Easysight Asysight Supply Chain Management Co., Ltd..(A3), New Hope Liuhe Co., Ltd.(A4), Gansu Ronghua Industry Group Co., Ltd.(A5). Shandong Ruyi Woolen Garment Group Co., Ltd.(A6), New Wellful Co.,Ltd.(A7), Wellhope Agri-Tech Joint Stock Co., Ltd.(A8), Yi Qiao Sea Cucumber Co., Ltd.(A9.), Zoneco Goup Co., Ltd.(A10), Tianbao Green Foods Co., Ltd.(A11). Data sources for Sina Finance and other securities website on the case of the company announced 2011~2015 annual report. Financial analysis mainly includes Debt-paying ability and Operation Capability. Debt-paying ability includes Current ratio (S1), Acid-test ratio (S2), Cash ratio( S3), debt Asset ratio (S4), etc. Operation Capability includes Receivables Turnover ratio(q1), Inventory Turnover ratio(q2), Current Assets Turnover ratio(q3), Total Assets Turnover ratio(q4), etc. Research Method Financial indicator analysis(fia).the financial index analysis method summarizes and evaluates the financial status and operating results of the enterprise, mainly including Debt-paying ability and Operation Capability. The method is based on the analysis of the financial statements to verify whether the decision is correct and the operation is good[8]. Financial Efficiency Analysis of Agricultural Products Listed Companies Financial Analysis of Debt-paying ability and Operation Capability based on the financial statements of the case companies from 2011 to 2015.Analysis of Debt-paying ability 161

3 Table 1. Case companies annual Debt-paying ability analysis in unit: [%]. Report period A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A S S S S S S S S S S S S S S S S S S S S According to the results in table 1,in 2015, seven companies Current ratio are less than 2, Acid-test ratio only Bei Da Huang Co., Ltd., New Hope Liuhe Co., Ltd., Zoneco Group Co., Ltd. and Yi Qiao Sea Cucumber Co., Ltd. is less than 1,it shows that the short-term Debt-paying ability of listed companies is better. In 2014, the Current ratio is only 4 companies greater than 2, accounting for about 36.36% of the total case, There are six companies less than 1, it shows that the short-term Debt-paying ability of the company is poor. In 2013, the Current ratio is only Gansu Ronghua Industry Group Co., Ltd more than 2, 7 cases of Current ratio less than 1,it shows that the short-term Debt-paying ability is relatively poor, the majority is over 50%, the overall solvency is poor. In 2012, the Current ratio of only Yi Qiao Sea Cucumber Co., Ltd is greater than 2, It shows that the short-term Debt-paying ability is relatively poor. In 2011, the Current ratio is only 4 case companies greater than 1, it shows that the short-term Debt-paying ability is relatively poor. The high interest rate of debt is the limiting factor that affects the financial leverage effect of agricultural listed companies [9].In summary, according to the above data analysis and research shows that the overall Debt-paying ability of listed agricultural products is poor and volatile. Analysis of Operational Capacity 162

4 Table 2. Case annual Operational Capacity analysis in unit: [%]. Report period A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A11 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q According to the results in table 2, in 2015, the Bei Da Huang Co., Ltd., New Hope Liuhe Co., Ltd., Wellhope Agri-Tech Joint Stock Co., Ltd. in a reasonable position of Receivables Turnover ratio, Inventory Turnover ratio, Current Assets Turnover ratio Total Assets Turnover ratio, accounting for about 27.27% of the total cases, but the other 8 companies have smaller indicators, it shows poor Operational Capacity. In 2014, the Denghai Seed Co., Ltd., New Hope Liuhe Co., Ltd., Wellhope Agri-Tech Joint Stock Co., Ltd. in a reasonable position of Receivables Turnover ratio, Inventory Turnover ratio, Current Assets Turnover ratio Total Assets Turnover ratio, it shows poor Operational Capacity. In 2013, the New Hope Liuhe Co., Ltd., New Wellful Co., Ltd., Wellhope Agri-Tech Joint Stock Co., Ltd.in a reasonable position of Receivables Turnover ratio, Inventory Turnover ratio, Current Assets Turnover ratio Total Assets Turnover ratio, but the other 8 companies have smaller indicators, it shows poor Operational Capacity. In 2012, the New Hope Liuhe Co., Lt., New Wellful Co., Ltd., Wellhope Agri-Tech Joint Stock Co., Ltd. in a reasonable position of Receivables Turnover ratio, Inventory Turnover ratio, Current Assets Turnover ratio Total Assets Turnover ratio, but the other 8 companies have smaller indicators, it shows poor Operational Capacity. In 2011, At the same time can prove, Operational Capacity is shows poor Operational Capacity. To sum up, according to the data analysis, we can see that listed companies in agricultural products have poor Operational Capacity. Suggestions (1) In terms of Debt-paying ability First, in a normally operating company, the total amount of liabilities should be less than the total amount of assets, however, due to various factors, the solvency of the company is weak, For example, in this paper has poor solvency, for this phenomenon, we must strengthen the internal management of the company, improve the efficiency of the use of assets. We should reduce the company's funding constraints, strengthen the utilization rate of money, and finally raise the 163

5 Debt-paying ability. Second, formulate a reasonable repayment plan and raise the awareness of debt repayment. If it due to the lack of debt service plan led to poor Debt-paying ability, so the company should be based on the actual situation of the debt service plan, try to make the company limited funds to maximize the benefits. (2) In terms of Operation Capability, First, choose a consistent accounting method, different accounting methods result in different operational capacity calculations, the company should choose an accounting method. Second, improve the comprehensive quality and professional ability of the financial analysis staff, the solvency is poor, it may be due to the low quality of the staff, in a company, the financial personnel comprehensive quality and business ability is very important. Financial staff is able to accurately determine the results for the ability to conduct an objective analysis is very important, therefore, we should pay attention to the quality of financial personnel and business ability, we can do pre-job assessment for the financial staff, training in the post to improve their business ability, setting up the correct performance indicators to measure is very important. References [1] Jun Kang. Study on Financial Sustainable Development and Influencing Factors of Agricultural Listed Companies [J]. Friends of Accounting, 2016,(05): [2] Shan-Shu Lv, Jia-Bin YI.Research on Profitability of Agricultural Listed Companies in China - Empirical Evidence from Agricultural Listed Companies in China [J]. Friends of Accounting, 2012, (13): [3] Yan Xiao, Jun Liu. Comprehensive Financial Evaluation of Listed Companies Based on Principal Component Analysis and Cluster Analysis - A Case Study of Agricultural Listed Companies [J]. Communication of Finance and Accounting, 2013, (05): [4] Hong Wang. The Impact of Policy Support on The Performance of Agricultural Listed Companies [J]. Finance & Economy, 2017, (06): [5] Xue-Gong Zhang. Financial Subsidy, Financial Policy and Scientific Innovation in Agricultural Listed Companies - Based on Bayesian Hierarchy Equation [J]. Chinese Rural Economy, 2013, (06): [6] Ting Lu. Analysis of Internal Influence Factors of Financial Governance Efficiency of Agricultural Listed Companies [J] Commercial Accounting, 2014, (15): [7] Ying-Mei GONG, Yi-Fang ZHANG.Study on Financial Performance of Agricultural Products Listed Companies - An Empirical Analysis Based on DEA [J].Special Zone Economy, 2016, (06): [8] Wei Wang, Shuo Ju, Xiu-Hui Qi. Analysis on the Strategic Performance of Agricultural Products Processing Companies - Based on the Research Data of Listed Companies [J]. Communication of Finance and Accounting, 2013, (35): [9] Jian-Yuan Tong, Yi-Min Yang. Analysis of the Financial Quality of Agricultural Listed Companies in China [J]. Contemporary Economics, 2016, (02):