Financial Analysis Of Cement Enterprises Under The Background Of Excess Capacity

China’s cement industry has been in a serious excess capacity state. Capacity utilization rate is generally between 70% to 75%. Excessive investment to bring the Wenchuan earthquake and four trillion policy, the cement industry, the situation is more serious in Sichuan. The state has introduced a variety of policy, in order to resolve the contradictions of excess capacity. In October 15, 2013, the State Council issued " guidance to the resolve of overcapacity contradiction".The financial impact of overcapacity brings to the enterprise is very obvious, including the decline in gross margin, asset turnover rate, high rate of assets and liabilities of enterprises, sales growth rate to slow or even negative. Therefore, this paper intends to choose the problem of excess production capacity of cement industry, a private cement company and especially in the southwest area as the research object, based on financial analysis basic method combined with statistical analysis, non- financial, statistical data, using the publicly listing Corporation disclosure of financial report and the author employed by A the company’s internal data and other sources of information, the causes of excess capacity, adverse effects and countermeasures.Usually, when it comes to overcapacity, people are more accustomed to starting from the macro perspective. In this paper, I analysis the corporate financial statements focus on excess capacity from the perspective of industry.In the second chapter of this article will first introduce the concept of excess capacity; secondly, review academia to the cause of surplus production and solve countermeasure analysis theory, including the "market failure" and " government failure" two schools; thirdly, the newly appeared "carbon trading method"; the general overcapacity, influence on the enterprise the financial statements.The third chapter is the analysis of the cement industry’s financial. It describes the basic situation of cement industry in China and the southwest area, summarizes the national industrial policy and environmental policy, introduced the foreign excess capacity, and puts forward the domestic practice of four kinds of countermeasures. After that, the author respectively by the standards of performance evaluation of state-owned enterprises, and listing Corporation annual report, analysis of several financial indexes of cement enterprises.The fourth chapter is the analysis of A cement company located in the southwest city financial. In this paper introduces the basic situation of A company, the recent financial statement analysis and trend of more comprehensive. Finally, I discussed the various ways the company take to solve the problems of excess production capacity.The fifth chapter is the conclusion of the full text.