Research On The Capital Structure Optimization Of CC Auto Company

Capital structure theory plays an important role in the financial management theory system.Scholars at home and abroad have conducted extensive research on this subject.Changes in the capital structure have a major impact on the cost of corporate finance,which can lead to changes in corporate operating performance and affect the development of the company.Therefore,the study of capital structure theory has become one of the focuses of academic research.Domestic and foreign scholars' research on capital structure mainly focuses on the following two points:First,verify the results of classical theory,explore the relationship between capital structure and business performance.Second,analyze the factors that affect the capital structure of the company.However,the existing research mainly focuses on the analysis of the characteristics of the industry's capital structure,and there are few studies on the optimization measures for the microscopic individuals.The automobile manufacturing industry is one of the top ten revitalization planning industries in China and has been in a state of rapid development for a long time.Compared with other industries,the automotive industry as a whole has the problem of a single financing channel and a large ratio of current liabilities.CC Auto Co.,Ltd.,as the largest listed company in HB Province,owns the leading position in its own brand of SUV products and has a significant influence on the domestic automobile manufacturing industry.The company not only has common problems in the capital structure of the auto manufacturing industry with a single financing channel and a high liquidity ratio,but also has problems unique to the company,such as low asset-liability ratios and insufficient leverage of financial leverage.In recent years,the state has vigorously promoted energy-saving and emission reduction,and implemented preferential policies such as purchase tax reduction on small-displacement vehicles,which has caused the sales of SUV series products of CC Auto Company to decline year by year.In this regard,the company hopes to increase the use of new energy vehicles and passenger vehicles.The product R&D investment approach seeks new profit growth points,and a good capital structure can provide sufficient funds for the company's new product research and development.Therefore,this article selects CC Auto Co.,Ltd.as a sample and conducts research through case analysis method and comparative analysis method.It determines the optimal capital structure range of CC Auto Co.,Ltd.,compares it with the current status of the company,and finds problems in the capital structure.And put forward optimization measures.First of all,this paper sorts out relevant literature at home and abroad,clarifies the basic theory of capital structure and its development history,and analyzes the significance of capital structure optimization to enhance corporate value from a theoretical perspective-Secondly,through a comprehensive analysis of important financial indicators such as shareholding concentration,asset-liability ratio,liability structure,and solvency,a detailed understanding of the status quo of the CC auto capital structure is compared with the average status of the industry,combined with an optimal capital structure model.It has been found that companies have problems in terms of capital structure such as low debt-to-asset ratio,high liquidity ratio,high equity concentration,and poor net cash flow.These problems will lead to the company's inability to make full use of financial leverage and make the company slow pace of development ultimately affects the value.Finally,in response to the above issues,the Company proposes optimization proposals such as optimizing the product structure,strengthening the use of bonds,diversifying equity,and establishing a monitoring system for the capital structure of the company from within the company and the market environment.It is expected to improve the company's capital structure and improve the profitability and company value.It also serves as a reference for other companies in China's automobile manufacturing industry.