The Analysis Of Financial Leverage Effect In HY Enterprise

With the change of the economical environment and the continuous evolution of the principal contradiction for electrical energy at various periods in our country,national electric energy reform initiatives have been further deepened,according to the rule of the "separation of power network and electricity generating companies",the State Council broke the monopolization of the electrical energy industry.At the same period,the price of the coal continuously increased,which exacerbated the competition of the electrical industry.the operating environment had been deteriorated constantly.since the end of 2015,driven by China's "the 13th five-year"plan,the system reform of the electrical power has been fully implemented,the investment entity of the market is more diversified,and the competition is more intensified and complex;The macro economy of our country has entered the new normal with a medium-high speed of growth,while the excess production capacity problem of the electricity supply becomes increasingly outstanding,under the policy background that the government regards the deleverage as an important part of supply-side structural reform,as well as the market background of the constantly optimized structure of the electricity supply,the ways for collecting the capital,expanding the scale and strengthening company' s competitiveness have become the central point of this industry.Therefore,focusing on the financial leverage effect problem that the debt management brings has a critical theoretical value and a practical significance on strengthening the effective utilization of the financial leverage for the electricity industry,such as assisting managers to enhance the management level,prevent the financial risk,avoid the financial crisis and correctly guiding the financial action of the company.The thesis chose HY company as the research object,applied the combined method of the case analysis and the questionnaire survey,used the relevant theory of the financial leverage to extend the study and the analysis of the problem of company's financial leverage effect,found out the existing problem and the reason,then figured out a way to effectually apply the measure to the financial leverage effect.Firstly,the research background and significance,current research situations,as well as the research methods and application value of this thesis is expounded.Secondly,the three basic theories:financial leverage theory,financial risk theory and financial performance evaluation are introduced.Thirdly,on the basis of the questionnaire survey results,compared the overall level of the electricity industry,analyzed the four main problems on financial leverage effects of HY company which has high financial leverage level,inadequate debt paying ability,weak profitability and surging financial risk;Fourthly,the following causes of four main financial leverage and effect's problems are analyzed in detail:unreasonable structure of capital,poor debt scale control,unreasonable profitability structure and inadequate financial risk supervision;ultimately,put forward the four corresponding solutions of optimizing company's funding structure,increasing the use efficiency of the capital,strengthening the profit structure regulation and control and promoting the financial risk control level.