1) Short-term solvency analysis The current ratio is a current asset divided by current liabilities and reflects the repayment ability of a company's short-term debt. Generally, the higher the current ratio, the stronger the short-term solvency and vice versa. .. As can be seen from Figure 4.1 above, the current ratio fell sharply in 2015, and after a year of steady growth, it surged again in 2017, then rose slightly, and then gradually stabilized. I am. The reason is that the significant decline in the current ratio in 2015 increased from $ 360 million in 2014 to $ 1.3 billion in 2015, nearly quadrupling. After the completion of the M & A in 2016, the assets and liabilities of the 1st Brigade increased significantly due to the increase in mergers of hotel-related data and the change in the scope of the merger of the 1st Brigade due to large-scale borrowing of hotels. In the second year of M & A, short-term borrowing will decrease to 840 million yuan, short-term borrowing of 3,593 million yuan, which decreased by about 83% , will be replaced with long-term borrowing, and the liquidity ratio will gradually recover. With the current ratio of 2018 and 2019 maintained at 0.66, the 1st Brigade not only repaid short-term loans from banks, but also significantly increased the return on previously purchased financial products. In this case, since the gap between inventory and hotel management in the hotel industry is large, the impact on inventory is low, and the change in quick ratio is close to the current ratio, but overall, the quick ratio of the 1st brigade is low. Debt service risk is significant and needs further improvement.The cash ratio refers to the ratio of all financial capital, securities and current liabilities of a company today and is the most conservative, most direct and liquid accounting indicator of the three short-term solvency. In 2015, the cash ratio fell sharply as the 1st Brigade spent more cash on the acquisition of Nanyuan and raising investment funds than the cash inflows of its operating activities. After M & A deals such as hotels in 2016, corporate cash flows increased significantly, but debt also increased, with the cash ratio rising slightly from 9.74% to 14.09%. By 2017, based on the above-mentioned decrease in current liabilities, after a year of business integration, cash flow also increased significantly, and the cash ratio returned to its peak at 37.98%. In 2018, corporate funding fell from $ 1.45 billion to $ 1.03 billion and the cash ratio fell to 29.21% due to higher prepaid rents, purchases of financial products and repayment of bank loans. In 2019, the cash ratio rose to 45.94%, up 57%. We believe it is appropriate to maintain a cash ratio of 20% or higher, and overall, the 1st Brigade's ability to pay cash is strong. 2) Long-term solvency analysis Asset-liability ratio is expressed by the ratio of total assets of a company to total assets, reflects the liabilities per asset unit of a company, and is an important accounting index for balancing the long-term solvency of a company. is. In general, the higher the ratio and the more debt is included in a company's unit assets, the more the ratio stays below about 50%, the business condition of the company is relatively good, and 50% or more is a certain debt service. It indicates that there is a risk and that companies need to raise their interest in this regard.The asset-debt ratio of the 1st Brigade increased significantly from 39.74% to 64.50% in 2015, mainly due to changes in the scope of the 1st Brigade merger, inclusion of Nanyuan shares, and interest expenditure and debt repayment of debt. Put a lot of pressure on companies and caused the asset-debt ratio to skyrocket. After the 2016 M & A, good economic conditions and rising asset-debt ratios have increased tremendously. After the 2016 M & A, the debt repayment burden of the 1st Brigade was eased and the asset-debt ratio gradually declined due to the favorable economic conditions and additional funds with targets. Over the past three years, after the continued integration and development of the 1st Brigade, the asset-debt ratio has reached normal levels, and this M & A has contributed to improving the long-term solvency of the 1st Brigade.