Financial Structure Study Of SUNING APPLIANCE

At present, SUNING APPLIANCE CO.LTD (SUNING APPLIANCE) is one of the largest listed company in the chain household electrical appliance industry. In recent years, the business scale of SUNING APPLIANCE has a High-speed expansion, but the related financial indicators are showing a declining trend. Is the current financial structure of SUNING APPLIANCE reasonable? The paper mainly uses the theory of capital structure in west countries and some researches of capital structure in our country to analysis the financial structure of the company, in order to offer some valuable reference to the strategy-maker.Based on the related theory of the capital structure in west countries and some theoretical studies on the listed companies in our country, the paper analyses and evaluates the financial structure of SUNING APPLIANCE by using comparative analysis, quantitative analysis, qualitative analysis and some other analysis methods. At the same time, the paper also offers some useful advice to optimize the financial structure to the strategy-maker in the company. The paper has five parts apart from introduction. The first part is the overview of some related theories. It mainly recalls the theories and studies of the capital structure at home and abroad, and defines the basic concept of the study. The second part is the introduction of the enterprise. It chiefly introduces and analyses the status quo of the financial structure, and some factors which influence the financial structure deeply. The third part is the analysis on the features and effects of SUNING APPLIANCE. Based on the advantages and disadvantages of the financial structure, this part uses not only 2005-2007 financial statements of SUNING APPLIANCE but also some industry average financial indicators to analyze the effects of the current financial structure, and gives some evaluations in the theoretical point of view. The forth part offers some advice to improve and optimize the current financial structure of SUNING APPLIANCE, in order to promote the healthy developments and the improvement of the profitability. The last part is the conclusion. The part draws a brief conclusion, and gives us the limitation of the study and some advice for reference at the same time. By analyzing the financial structure of SUNING APPLIANCE, the paper picks out some unreasonable factors in the current financial structure. It also offers some references to the policy-maker in the company on making financing decision for the operational and management activities in the long run.The analysis process on the financial structure of SUNING APPLIANCE has certain reference value not only in the financial analysis but also in the financing decision-making of the other companies.