Financial Performance Analysis Of Magang Stocks Trading Co Under Supply Side Reform

The steel industry plays a fundamental role in the development of China’s national economy.Since 2012,it has been in a state of overcapacity and low concentration of the industry.The economy of the entire industry has fallen and entered the "severe winter" period,moving from low profits to losses.In 2016,the state began to implement supply-side reforms,clarified the five major tasks of " three eliminations,one reduction and one supplement",and made the steel industry a key reform target.Supply-side reforms are bound to have an impact on the steel industry.But can the steel industry really come out of the downturn in the implementation of supply-side reforms?What measures will the steel industry take in combination with the five tasks of supply-side reform in the development process?How have the financial performance brought about by the implementation of these measures changed from before the reform?What are the shortcomings in the implementation process?With these doubts,this article takes Magang Stocks Trading Co.as a case study object and conducts further research and analysis.First of all,it collates and summarizes the relevant domestic and foreign literature on supply side reform and financial performance,and defines the theories involved in financial performance and supply side reform;then,it interprets the practice of Masteel for the five tasks of "three removal,one reduction and one compensation";thirdly,it analyzes the implementation of supply side reform of Masteel from the perspective of operating capacity,profitability and other financial indicators At the same time,the paper analyzes the financial performance change of Ma Steel in recent five years through vertical and horizontal comparison with the method of efficiency coefficient.Finally,in view of the shortcomings in the reform of Maanshan Iron and Steel Co.,Ltd.,the corresponding measures are put forward.It is suggested to stabilize debt leverage,increase R&D investment,strengthen the control of accounts receivable,and strengthen inventory management.It is hoped that the research of this paper can further improve the financial performance of Magang under the background of supply side reform.