Financial Analysis Of Ag Steel Company Limited

As the downturn in the steel market activity in recent years,the iron and steel industry overcapacity,the phenomenon of market demand continues to decline,at the same time,steel products used in raw material prices have continued to climb,many unfavorable factors putting pressure on the steel industry,steel enterprises have to increase investment in technology and product publicity to ensure that in the growing competition not eliminated by the market.As a result,many steel enterprises are faced with capital shortage and declining business performance,and their survival is facing a test.AG,the core heavy industry enterprise in liaoning province,has been affected without exception,with unreasonable product structure and declining market share.At the same time,all stakeholders and other social personnel have also begun to pay increasing attention to the financial status and business performance of the enterprise.Therefore,it is particularly important to conduct a comprehensive financial analysis of AG shares and timely find out the existing financial problems of the enterprise.Based on AG co.,LTD as the research object,selected the AG shares in 2015-2018 financial statements data,and combining the report data for enterprises to carry out a comprehensive financial analysis system,select the first three statements(balance sheet,income statement,the cash flow statement)of the typical project trends and structure analysis;Secondly,financial ratio analysis was carried out,including vertical analysis of debt paying capacity,operating capacity,profitability and growth capacity.Steel enterprises with the same share size as AG(BG shares,SG shares and HG shares)were selected for horizontal comparison and analysis.At last,dupont comprehensive analysis is carried out.According to the analysis results,it is concluded that the problems existing in various indicators of AG share in financial analysis mainly include the aggravation of short-term debt repayment risk,low operating efficiency of assets,high cost and expense,and low utilization rate of fixed assets.Finally,based on the problems mentioned above,some reasonable Suggestions are put forward from the aspects of optimizing capital structure,strengthening inventory management,improving cost management and improving the use efficiency of fixed assets.Through the research of this paper,it is expected to provide beneficial reference for the financial analysis of iron and steel enterprises and improve the financial management level of the company.