Study On Capital Structure Optimization Of Valin Steel

China is undergoing tremendous social transformation and entering the transition period of economic development.The steel industry,as the foundation of the national economy,has a serious problem of excess capacity.Excessive debt of steel enterprises leads to the continuous expansion of financial risks,so that the economic benefits of the entire steel industry decline.In addition,the capital structure of steel enterprises also faces problems such as high asset-liability ratio and unreasonable structure.Capital structure not only affects the market value of enterprises,but also affects the management behavior of enterprise operators and the governance structure of the whole company.This paper takes valin iron and steel as the case study object,mainly because the asset-liability ratio of the company in recent five years is as high as 80%,and current liabilities account for 85%.Under the background of "deleveraging" strongly advocated by the state,it is of certain significance to study the capital structure and operating efficiency of debt of valin iron and steel.The case study adopts the generalized concept of capital structure and summarizes the relevant methods and literature on how to determine the optimal asset-liability ratio,which provides theoretical support for the case study.The capital structure of the case study company mainly reflects the current situation of capital structure intuitively from the asset-liability ratio,liability and equity structure and capital cost,and reflects the operating effect of corporate debt by analyzing the financial leverage benefit,and then indirectly reflects the capital structure benefit.Although various indicators of valin iron and steel improved in 2018,the industry average and benchmark baosteel shares are far from each other.The scale of debt is still too large,the financing cost is high,the financial leverage efficiency is low,and the optimal capital structure is not yet reached.The operation of iron and steel enterprises is greatly affected by the industry cycle,and the growth of enterprises is unstable.In order to reach the goal of "entering the world top 500" of valin iron and steel enterprise,the optimal capital structure is calculated through function derivation from the perspective of debt income and risk,and the optimization space of capital structure is found through comparative analysis.Through relevant indicators,this paper analyzes the capital structure from the perspective of operating efficiency of debt,and puts forward Suggestions to optimize the capital structure,which is of great significance for enterprises to realize the maximization of enterprise value,and can also provide some reference for other companies of the same type.The capital structure is a reflection of the rights and obligations of the stakeholders in each enterprise,which has a wide impact on the corporate governance structure and further has a profound impact on the business performance and efficiency of the enterprise.This paper adopts the generalized probability of capital structure,and summarizes the relevant methods and literature to determine the optimal asset-liability ratio,which serves as the theoretical support for the case study.The capital structure of the case study company mainly reflects the status quo of the capital structure directly from the asset-liability ratio,liability and equity structure,and capital cost,and then indirectly reflects the benefit of the capital structure by analyzing the financial leverage effect to reflect the operating effect of the enterprise liability.Although the indicators of valin iron & steel are better in 2018,the industry average and benchmark baosteel shares are far from each other.The scale of debt is still too large,the financing cost is high,the financial leverage efficiency is low,and the optimal capital structure has not been reached.The operation of iron and steel enterprises is greatly affected by the industry cycle,and their growth is unstable.In order to achieve the goal of "entering the top 500 in the world" of valin iron and steel company,the optimal capital structure was calculated through function derivation from the perspective of debt income and risk,and the room for improvement of capital structure optimization was found through comparative analysis.In order to improve the value maximization of valin iron and steel enterprise,realize the strategic goal,find out the countermeasures and safeguard measures to optimize the capital structure.This paper optimizes the capital structure through relevant indicators and operating benefits of liabilities,which is of great significance for enterprises to realize the maximization of enterprise value,and can also provide some reference for other companies of the same type.