Research On Financing Ability Of DJ Environmental Company Limited

In recent years,China's environmental problems have become increasingly prominent,which have brought a series of impacts on people's lives and social and economic development.In order to control the environment,the government has invested a lot of money,issued a series of policies,and included ecological and environmental protection in the country's 13 th five-year plan.All kinds of environmental protection enterprises gradually emerged anddeveloped.However,the environmental protection products are quasi-public goods with strong positive externalities,and the environmental protection industry is characterized by large initial investment,long payback period and poor expected return rate,they are not accepted by external investment institutions.As a result,it is difficult for environmental protection enterprises to seek financing opportunities,and to obtain the required funds in their own capacity.This problem restricts the development of environmental protection enterprises.Therefore,this paper takes DJ Environmental Company Limited as the research case to study its financing ability.Through the evaluation and research on the financing ability of DJ Environmental Company Limited,this paper finds out the problems in the financing of DJ Environmental Company Limited,so as to put forward countermeasures to solve the financing problems of DJ Environmental Company Limited and provide reference for other environmental protection companies.This paper takes DJ Environmental Company Limited as the research case and its financing capacity as the research object.Firstly,the theoretical basis part elaborates the connotation of environmental protection industry,financing ability and related theories of enterprise financing,which lays a theoretical foundation for the following evaluation of DJ Environmental Company Limited's financing ability.Secondly,the financing status of DJ Environmental Company Limited is analyzed from the three aspects of the development stage,financing scale and financing structure of the enterprise.Again,combined with the connotation of environmental protection industry,related to the theoretical research of scholars and DJ Environmental Company Limited financing present situation,this article could be divided into enterprise financing ability scale,research and development strength,profitability,operation ability,debt paying ability and development ability,select the financialindex,build the financing ability of financial evaluation index system,and the methods of factor analysis and radar map analysis,DJ Environmental Company Limited's financing ability is in what position in the listed companies in the same industry,compared with the industry average to detailed analyses of current situation of DJ Environmental Company Limited financing ability,find the company financing problems,analyze the reasons and put forward countermeasures.Through empirical research,it is found that DJ Environmental Company Limited has five problems,such as narrow financing channels,unreasonable capital structure obtained through bank borrowing and high debt risk,and analyzes the reasons from both internal and external aspects for the existing problems.Finally,the paper proposes suggestions from three aspects of improving the enterprise's own strength,enhancing the enterprise's financing ability and creating a good external financing environment,in order to solve the financing problems of DJ Environmental Company Limited and provide reference for other environmental protection companies with similar financing problems.