Research On The Financial Performance Of The Methods Out Of Financial Distress Of Li Ning Company

With the ever-changing technological changes,the more complex the environment faced by enterprises,the more and more business risks and financial risks faced by them.More and more enterprises are facing financial problems or are about to be in financial trouble.Often the source of financial distress from the enterprise itself can not adapt to the development of the environment.Therefore,when companies face financial difficulties,it is difficult to find a way to help themselves,often very few companies to have a treat ready.Which makes it important to study how firms can get out of financial difficulties after taking them into financial distress.This article is based on this background,only to choose our first national sporting goods brand "Li Ning" company.Li Ning Company to successfully use series turnaround path out of financial distress as a case study.This paper analyzes the relationship between the difficulties and the financial performance of Li Ning Company by means of case analysis,qualitative and quantitative methods,comparative analysis and so on,and analyzes the reasons why Li Ning Company can get out of the dilemma,and for the same type of dilemma enterprises to provide the corresponding financial difficulties from the inspiration and recommendations.Firstly,this paper reviews the research on the domestic and foreign scholars on the financial distress,the trapped path,the trapped path and financial performance of the relevant research,and its review.The related concepts such as financial distress are defined and the corresponding theoretical bases are introduced.Then introduced Li Ning company and its industry background,Li Ning's financial distress performance,Li Ning company in the financial difficulties in the implementation of a series of difficulties,Li Ning company after the financial situation.Afterwards,the paper analyzes the motives of the way of bailing out the company,and researches the road execution effect and financial performance of Li Ning Company.Among them,the financial performance appraisal uses the financial ratio method,the Tobin Q value method.Through the contrast and vertical comparison of Li Ning Company,it is concluded that Li Ning 's troubled path is effective.Its profitability,operating ability,solvency and growth ability has been greatly improved.Compared with Anta company(not using the path of the relief)financial performance,Li Ning Company through the implementation of the path to get a better relief effect.By using Tobin's Q-value method,the market is generally optimistic about Li Ning and has better growth.Based on the results of financial performance evaluation and the related theoretical basis,this paper analyzes the reasons for the success of Li Ning company,and draws a series of revelation for the difficulties of the company for reference: optimize internal management,the use of the path to improve the governance structure;sustainable use of the combination of the path to tackle the path;make use of the path to optimize the capital structure,reduce financial risk;to maintain a moderate concentration of equity,timely introduction of strategic investors;with the path to achieve strategic transformation,looking for new directions.