Comparative Study On Deleveraging Financial Performance Of Iron And Steel Industry Under The Background Of Supply-side-reform

As an important part of China’s construction development,iron and steel industry is closely related to the development of China’s real economy.In January 2016,China proposed to "reduce the burden" for the steel industry.The supply side structural reform of "three deleveraging,one reduction and one compensation" is being implemented in the iron and steel industry.Deleveraging is an important method for the iron and steel industry to further realize the supply side structural reform.How to implement deleveraging,enterprises are also in the process of exploration,the purpose of this paper is to help enterprises analyze the specific impact of deleveraging policies on the financial performance of enterprises,provide suggestions for enterprises from the financial performance evaluation,and help enterprises complete the process of deleveraging.Firstly,this paper expounds the research background,research situation and relevant theories of deleveraging and performance analysis at home and abroad.Secondly,using factor analysis method,29 listed iron and steel enterprises are randomly selected.According to the establishment of financial evaluation system index processing and weight distribution,the change of factor scores before,during and after leverage is obtained.The results show that after deleveraging,the overall comprehensive scores of enterprises are generally higher than before deleveraging,and in terms of specific scores,the scores after deleveraging are also better than before deleveraging,so it can be seen that deleveraging has obvious effect in the iron and steel industry,and has a positive impact on enterprise efficiency and production.Finally,according to the factor scores of Baosteel in the previous chapter,the index of nearly six years is selected,and the factor scores of all aspects of Baosteel are analyzed with the method of financial index analysis.It is concluded that Baosteel Group does not use debt to equity swap to deleverage,but optimizes its asset allocation,improves the efficiency of asset utilization,increases the main business income,and utilizes the internal earnings of the enterprise Accumulate to repay the debt to achieve the effect of deleveraging.In the three years before deleveraging,the financial indicators of Baosteel enterprises deteriorated year by year,and the risks faced by the enterprises increased year by year.However,after deleveraging,the financial indicators of Baosteel enterprises improved significantly.Baosteel has improved in all aspects compared with the previous ones.Because Baosteel Co.,Ltd.is the leader of China’s iron and steel industry,the analysis of Baosteel Co.,Ltd.is representative in all aspects.Therefore,in chapter five,according to the analysis results of Baosteel Co.,Ltd.,the development suggestions for the whole iron and steel industry are put forward.Deleveraging is an innovation of iron and steel industry,which reduces the burden of iron and steel industry and reduces the credit risk of society.Deleveraging is also a right direction,which requires steel enterprises to continue to deepen implementation.