Research On The Capital Structure Of YH.co

Retailing business is a traditional industry of our country and plays an increasingly important role in economic development.In the new Internet time,the traditional retailing industry is facing a huge impact.The business model,sales channels,the source of profits and capital operation has a tremendous change.Traditional retailers want to set up new stores to open up the market but persist by the rapid growth of rent fee,open up the online channel also need invested heavily in R&D expenses and has become competition with each big electric business platform.We must turn our focus from 'inventory' to 'value',from turnover and selling to dealing with funding.Capital structure is a big question for the past years on financial management.Reasonable level of capital structure may lead to company's maximum value.YH is an outstanding company of Chinese retailing business.The paper refers to theories and research findings of capital structure,defines the concepts of capital situation in the article and talks about the formation of YH's financial situation.The article contrast YH's capital structure to its profits and its peers' structure in order to find the defectiveness of YH's capital structure.Then the factors from both macroscopic and microscopic have been analyzed and four methods are offered.