Study On Optimization Of Capital Structure Of Suning.com Co.,Ltd.

In recent years,with the popularization of smart phones,the development of mobile payment technologies,and the increase in the disposable income of the people,online shopping has gradually been accepted and recognized by the people.The total amount of online consumption in China’s total consumption has been increasing.According to the data released by the National Bureau of Statistics,the total retail sales of online social consumer goods in China accounted for nearly 20% of the total retail sales of total consumer goods in 2017.Faced with such an optimistic economic environment and the strong support of China’s national policies,a large number of traditional industries have begun to enter the e-commerce sector,which has made the competition among e-commerce increasingly fierce.The e-commerce platform faces opportunities and challenges as an emerging retail platform.As a retail platform that integrates online and offline sales,Suning should be aware of the crisis it faces.Its competitors are not only e-commerce companies like Taobao,JD,VIPSHOP,Dangdang and GOME,but also professional retail chain companies such as YYTM,SZAP,Gifore,aisidi,Nanji E-commerce,Hiteker,Telling Holding.Suning cannot focus on its own expansion of its business and the increase in market share,as well as the improvement of its profitability and the optimization of its capital structure.The capital structure is the proportional relationship between the debt capital and the equity of the enterprise,which determines the debt repayment and refinancing ability of the enterprise.By properly adjusting the capital structure of the company,the company’s value can be maximized.Therefore,the rationality of the capital structure is an important indicator that enterprises should pay attention to,and it is related to the long-term development of enterprises.This paper takes Suning as a research case,and uses Suning’s financial report as the data base.Through the theoretical study of capital structure and a large amount of reading literature,based on the trade-off theory,first analyze the operation status of Suning.Analysis of Suning’s capital structure situation from 2008 to 2017 and compare its capital structure situation with Amazon,the world’s leading Internet company.The selected indicators are asset-liability ratio,equity ratio,shareholder equity ratio,ratio of long-term liabilities to total liabilities,ratio of short-term liabilities to total liabilities,and short-term liabilities.The ratio of assets,the ratio of long-term liabilities to total assets,and so on.According to the comparative principle of the Straight flush official website,it is classified into three levels: commercial trade,retail,and professional chain.A total of 12 companies are YYTM,SZAP,Gifore,aisidi,NanjiE-Commerce,Hiteker,TellingHolding,Aiyingshi,SanfuOutdoor,Leysen,Doctorglasses,Vats Liquor and Suning.In addition to Suning,the other four companies have shorter time to market and insufficient data.So select 7 outstanding enterprises from the retail industry professional chain enterprises to compare the average value of their capital structure related indicators with Suning related indicators,and find that Suning capital structure has unreasonable debt structure and refinancing stock preference.In view of the causes of these problems and the influencing factors of Suning’s easy-to-buy capital structure,this paper proposes the optimization measures of Suning and the guarantees that should be taken to implement these measures,namely,reduce the proportion of short-term liabilities and expand the company’s financing channels.In order to achieve the above effects,supporting measures can be taken to improve the core competitiveness of enterprises,improve their profitability,rationally formulate the company’s business strategy and improve the internal control system of enterprises.We can take these measures to improve the capital of Suning and maximize its corporate value.Through the vertical and horizontal analysis of Suning this paper points out the problems in the capital structure of Suning and proposes optimization measures,hoping to remind other similar enterprises to be sustainable and healthy for this type of enterprise.I hope that I can make contributes to their development.