Financial Dilemma And Countermeasures Of Listed Steel Company

Financial distress is also known as "financial crisis." In recent years,with the rapid development of economic,fierce competition leads to financial risk,more and more enterprises were forced into trouble,and difficult to self-help.China also began to study the theory of financial distress from the 1970 s.Enterprises in financial distress of the state also become the focus of attention of various industries.As a pillar industry of the national economy,the steel industry is an important guarantee to stabilize the national economy and development.Its prosperity is also related to social stability and development.In recent years,the economic downturn,the market downturn in consumption,steel industry,a serious excess capacity,supply and demand imbalance,prices continue to decline and so on.The national steel prices are varying degrees of loss.According to the annual report shows that China's listed steel prices more than 40 there are four with * ST warning delisting risk enterprises,in addition,there are many non-listed private steel prices bankruptcy.China Steel Association statistics,as of June 2015,the main iron and steel enterprises loss of 21.68 billion yuan main business,an increase of 16.78 billion yuan over the previous year;steel enterprises,the loss of enterprises accounted for 42.6%.If you do not handle the financial problems of enterprises,then there will be the possibility of delisting.Therefore,based on the economic cycle theory and capital structure theory,this paper uses the case study of Songshan Iron & Steel Co.,Ltd.to analyze the financial distress of Shaoguan Iron & Steel Group from the aspects of solvency,profitability,debt structure and cash flow.This paper analyzes the causes of financial distress from both external and internal aspects,and puts forward solutions from the market,financing and operation management,according to the performance characteristics of financial distress and the reasons for its emergence.Relatively passive development of steel enterprises situation.