Research On The Capital Structure Of Sainty Marine Corporation

In recent years, due to the economic crisis and the impact of industrial transfer,China's shipping industry is a depression, shipbuilding orders reduced significantly,The problem of excess capacity is becoming prominent increasingly from high growth.Many companies are facing closure or bankruptcy risk because of the sharp decline in orders of enterprises. In order to promote the development of shipbuilding industry and enhance the international competitiveness of shipbuilding industry, we must analyze the present situation of shipbuilding industry and the financial situation of shipbuilding enterprises. from the perspective of capital structure, It is very important for the shipbuilding enterprises with high capital operation to analyze the problems of capital structure.Through the systematic review and research on the basis of western capital structure theory, under the study of the industry background, There was a analysis about capital structure of Sainty Marine corporation. It found that problems of the capital structure. Next, I analyzed the specific impact resulted from the capital structure of the enterprise, and gave some suggestions for solving problems. Through the analysis in the financial situations of Sainty Marine corporation, there was three consecutive years of loss about the operating results of the company, shares were treated specially, there is a risk of delisting, and the prospects for the company is not optimistic. Sainty Marine corporation in operation and management capacity is weak,and the company's profitability is poor, quick ratio was less than 1, flow ratio was less than 2, asset liability ratio was higher than 50%. Unreasonable capital structure reflected a big problem of Sainty Marine corporation in the solvency of the industry.In the liability structure, current liabilities and long-term liabilities should be controlled in a certain proportion. Through the analysis in the capital structure of Sainty Marine corporation, it showed the flow of the debt ratio is too high, it will lead to the deterioration of the short-term solvency of the company, increase financial risk,and it will affect the company's profitability and operating conditions. Through thesummary of Sainty Marine's problems in capital structure, I put forward some countermeasures and suggestions, for example, reducing assets and liabilities rate for optimizing the capital structure, increasing the ratio of long-term debt and broadening the financing channels for optimizing the debt structure, improving the ownership structure etc., increasing the equity capital actively, reducing debt capital, and trying to improve the operational efficiency of enterprises through improving capital structure.