Analyzing On The Financial Indexes Of Capital Structure Of China Vanke Co., Ltd

Real estate industry have high debt ratio, which ranks only second to banking, and it also plays a major part in economy in china. As policy transferred from active and stable policy to strained policy, it will significantly influence real estate industry. Therefore,it is significant to do research on the optimization of corporation structure. As an intensive capital industry of the real estate,capital is always an important factor that influences its existence and development. In fact,a number of realty corporation that the broken capital chain results in bankruptcy is very large,so it is particularly important to choose rational debt scale and formulate safe policy of capital structure. Through doing research on capital structure of Vanke company, which is the leading enterprise of the real estate,the author put forward a rational means how the enterprise especially real estate enterprise choose reasonable capital structure.Based on analyzing the connected theoretical and empirical analysis of capital structure and optimal capital structure to the listed companies,this article studies the factors influencing capital structure. Through looking for major factors influencing capital structure, we model the decision. The chief factors are internal flow characteristics, efficiency in operation, profitability, and growing ability. Evaluating indicators in according with the five factors are liquidity ratio, shareholders' equity velocity, turnover of total assets, net profit to sales ratio, and total assets rate of growth.According with evaluating indicators and practical situation, we put forward the train of thought. Firstly, we analyze the current situation and establishment. Secondly, we confirm the static state in capital structure through the studies in financial data of Vanke Company, industry, foreign pattern company in real estate. The ideal capital structure is existent in theory but we cannot come down to earth. We can choose the suboptimum capital structure decision adopted by top10 and foreign pattern in real estate industry because it can be realized and achieved in real life. The interval is the optimal choice for Vanke Company. Thirdly, this article compromise the current situation in real estate, factors influencing capital structure and financial elasticity and put forward the interval and measure for optimize.The key conclusion lies that the optimizing of capital structure should compromise the external and internal environmental factors, the current situation in real estate, and financial elasticity. We draw the conclusion as follows.First, the debt ratio of 60 percent is the optimum point of capital structure and is also the average. The debt ratio of most of the company is 70 percent. For the lower debt ratio, we can increase the ratio to support larger scale and take advantage of financial leverage.Secondly, the debt ratio of 60 percent is the average and the interval fluctuates between 55 and 65. Generally speaking, this prioritization scheme satisfy the need for achieving the goal and reflecting value maximization and increase the flexibility and vigilance against risks.The article brings forth three suggestions for prioritization scheme as follows: First, our company should open up new ways in financing although the channels in financing are wider than the others. The need for funds can not be satisfied well. Secondly, our company should choose reasonable pattern in financing. The chief behaviors are that the scale is smaller and have a gap to optimal capital structure. Lastly, our company should improve the capacity in risk resistance because the company is in a difficult or embarrassing position for ever changing situation. It can give chance but risk also and the company should response to policy. The capital structure is a complicate system concerning with multivariable and multifactor and should fit for internal and external situations and improving the value of the company.This paper is helpful for the optimizing of capital structure. For some reasons, it has some shortcomings and need to perfect in some details. I hope that through this paper can call out more people to treat this problem so as to optimize the capital structure further.