The Social Yalue Of Critical Point Index In Solving Enterprise Debt Crisis

As China's economy develops by the high speed to the medium-high speed,with low society demand,more challenge of cutting overcapacity and deleverage to the business management,there are a group of companies for a variety of reasons falling into financial crisis.The crisis mainly divided into two categories.First,these companies don't have enough market or technology,and their production and operation problems getting them into liquidation,which is belong to the kind of industry reshuffle.Second,these companies own enough market and stable production.Due to excessive debt and insufficient cash flow,they are getting into financial crisis.Since 2012,there were quite large amounts of second financial crisis.These banks,as creditors,sometimes felt sorry for these companies,meanwhile they think through if there are certain indicators in advance to avoid this kind of financial crisis.Although much more reasons for this kind of financial crisis,but they still can set up some indicators as a reference for enterprise managers.This paper will analyze M Group financial crisis as the second type,from the perspective of Banks and cash flow of company,thus get a couple of reasons: First,there is no cash back,meanwhile more non-operating assets investment of M Group occupy its cash flow,causing over indebtedness.Second,in the previous year of financial crisis,the proportion of excessive and short-term debt financing debt is too large,forcing M Group into financial idling,which affects the production,consumption of free money,till its capital dried up.Third,M Group chooses to private lending rather than proposing an active debt restructuring,which aggravates the financial crisis and entered a passive restructuring.For these reasons,the author,through learning theoretical knowledge of scholars both at home and abroad and years of work practical experience,aiming to provide reference basis of the corporate debt financing excessive tipping point index and non-operating assets holding point index,from non-operating assets held,reasonable debt financing scale and short-term debt management,to bank employees and enterprise managers.Through analyzing the case of M Group debt crisis,and according to past financial data for corporate debt financing excessive tipping point and non-operating assets holding point for data calculation,it turns out that M Group has excessive short-term bank financing in 2012,but without overall debt financing.With 3 years' structure adjustment,M Group's cash flow is more than short-term debt.The result shows that the year 2006 is the best time to dispose its assets,and the year 2007 is the best time to dispose its equity assets.If M Group follows the warning of excessive critical point of corporate debt financing and non-operating assets hold critical points,it can reduce debt and avoid the debt crisis,with taking debt structure adjustment,reducing the investment spending and disposing non-operating assets.Through the case of the M Group debt crisis,it can draw the conclusion that corporate debt financing excessive tipping point index and non-operating assets holding point index,on the one hand can serve as a monitoring index for the debts of the enterprise crisis,providing warning function for banks and companies;On the one hand,it can provide the basis for companies to resolve the corporate debt crisis.