S Steel Enterprise Under The Background Of Supply Side Reform Leverage Research

As a pillar industry in the development of the national economy,the steel industry has made an indelible contribution to China’s economic development.Since the reform and development,it has been in a state of rapid development,and it has provided a large amount of raw materials in the fields of roads,railways,real estate,and automobiles.However,with the impact of the macroeconomic environment in recent years,the development of the steel industry has been greatly challenged.The problems and contradictions accumulated over the years have begun to appear.The decline in corporate profits has led to a poor turnover of funds.Enterprises have to increase their debts and rely on a single the financing method is difficult to move forward.The existence of high leverage makes the pressure on corporate debt repayment huge,and there are successive losses in steel companies,debt defaults,and bankruptcy.In this context,the central government proposed a supply-side structural reform in 2016,and the “de-leveraging” task of the steel industry is imminent.The first part of this paper expounds the research background and significance.At home and abroad,the research status of supply side reform,steel enterprise debt governance and de-leverage is pointed out,and the innovation points and research methods of this paper are pointed out.The second part describes the related concepts of leverage and capital structure theory and risk management theory that will be used in deleveraging research.The third part analyzes the status quo and characteristics of steel enterprise leverage from the perspective of macro industry.From the source and scale of debt of steel enterprises,the debt maturity and debt dilemma,and the analysis of the reasons of high debt management,it points out the necessity of implementing supply-side reform in steel enterprises and de-leverage.It is of great significance to the sustainable development of steel companies.The fourth part analyzes the case of S steel enterprises under the supply side reform.Firstly,it analyzes the financial status of S companies and analyzes them from the aspects of operational capability,solvency and profitability.Then focus on the analysis of its current status of leverage,mainly analyzing its debt composition and using financial leverage to produce what effect.Finally,the high-leverage causes are analyzed from the perspective of the enterprise itself and the external environment.The fifth part proposes countermeasures for the de-leverage of S steel companies under the supply-side reform.Point out the principle of S-steel enterprise de-leverage,propose to control the adjustment of debt structure,keep financial leverage within reasonable and safe scope,change financing methods,optimize financing structure without raising asset-liability ratio,and propose the use of debt-to-debt Recommendations for various financing options such as stocks,financial leasing,and bond financing.In the long run,S steel companies still need to adopt upgrade and transformation,mergers and acquisitions,etc.to enhance the comprehensive competitiveness and solve the problem of high leverage.The full text adopts literature review method and case study method,in order to provide some reference for the de-leverage of steel enterprises under the background of supply-side structural reform.