A Study On The Optimization Of Capital Structure Of Huaneng Power International,Inc.

The capital structure of an enterprise is an important indicator to reflect the financial situation of an enterprise,which is expressed by the relationship between the debt and the equity.It is the decisive factor in the company's ability to repay debt and refinance,and it also determines the future profitability of the enterprise.The reduction in the cost of financing,the adjustment of financial leverage,and the maximum return on the company's own funds can be achieved through a reasonable capital structure.The optimal capital structure is refer to enterprise to distribute reasonably the proportion of equity and debt in a certain period of the appropriate conditions,which minimizes the cost of comprehensive capital and maximizes the value of the enterprise and the possibility of arousing enthusiasm of stakeholders.Therefore,the search for the optimal capital structure of the enterprise becomes the focus of the research on the capital structure.This paper chooses the Huaneng Power International,Inc.as the research object,based on the summary of the domestic and foreign research status and related theories of capital structure and structure optimization,and opts the financial statement data of Huaneng International Company for nearly six years as the analysis object.Through the analysis of the financial situation of the whole body of the company,the status of the capital structure and comparative analysis with outstanding companies in the same industry,including the analysis of the precondition of debt management,debt ratio and current total capital structure,financing structure,debt structure,equity capital structure,the matching degree between capital term structure and asset structure,financial leverage effectiveness and so on,this paper finds out the existing problems in its capital structure.This paper presents a optimization program for solving a series of problems in the capital structure,such as high asset liability rate,irrational financing order,relatively single financing mode,high current debt rate,serious shortage of working capital and large financial leverage coefficient and so on,besides the choice of optimization goal is the maximization of enterprise value:Firstly,the static optimal capital structure equation method is used to calculate the optimal debt rate for the enterprise.Then,considering the macro and micro factors that affect the capital structure of the company.According to the actual situation,the influence direction of the influence factors on the increase of liabilities can be identified,and entropy weight method can be used to calculate the weight of each factor to judge the degree of impact.After comprehensive consideration,the conclusion is that the enterprise should reduce its asset-liability ratio.Furthermore,based on the results obtained from the static optimal capital structure and comparing the industry average of the asset liability ratio,the dynamic interval adjustment is made to determine the optimal capital structure interval of Huaneng International Corporation,Finally,it lists the specific measures to optimize the capital structure of Huaneng International Company,which puts forward the methods to stabilize the company's asset liability ratio,balance the long and short term liabilities,improve the operating capacity and profitability,and build a diversified financing system.Through the analysis of the capital structure of Huaneng International Company,this paper tries to find out the common problems in the capital structure of China's power enterprises,and puts forward the solutions.The results of this paper provide relevant reference for the theoretical research of the capital structure and optimization of the enterprises in the domestic electric power industry,which has important theoretical and practical significance.