Research on Financial Performance and Capability of Urban Rail Transit Enterprises

Abstract

[Objective] In order to systematically grasp the financial situation of enterprises and improve the operational decision-making ability of urban rail transit enterprises, it is necessary to study the financial performance and capability of urban rail transit enterprises. [Method] From the five aspects of total operating cost, profitability, solvency, operating ability and growth ability, the total operating cost and labor cost, solvency ratio, profitability ratio, operating ability ratio and growth ability ratio of urban rail transit enterprises in 10 Chinese cities are statistically analyzed, and based on this, the financial performance and capability of enterprises are studied. [Result & Conclusion] Tianjin Metro stock PPP (public-private partnership) project revitalizes funds of more than RMB 15 billion, reducing the government debt burden. Since the total operating cost and labor cost of rail transit enterprises in other cities are rising as a whole, it is recommended to reduce the government financial pressure and improve cost efficiency through PPP mode. The long-term solvency of rail transit enterprises in Beijing, Chengdu, Wuhan, Qingdao and Nanjing is relatively weak. In view of the high debt level of rail transit enterprises in Chengdu, Wuhan and Nanjing in 2021, it is suggested to take measures such as photovoltaic power generation, ground source heat pump, shared vehicle base and equipment localization to reduce the cost of enterprises. For the problem of low corporate profits, methods to increase revenue such as providing operation service consultancy, operational management services are recommended.

Keywords

• urban rail transit
• financial performance and capability
• solvency
• profitability
• operating capacity
• growth ability