Research On Capital Structure Optimization Of Household Appliance Enterprises

The theory of corporate capital structure is one of the core theories of modern financial management.The advantages and disadvantages of the capital structure of enterprises have a great impact on financial risks,and even affect the survival of enterprises.The home appliance industry is one of China’s basic industries and also plays an important role in the development of the market economy.However,the home appliance industry has lost a strong growth momentum.The home appliance industry is affected by the market and the external environment.As the market competition becomes more and more fierce,the sales and profits of the company are also declining year by year,coupled with the rise of online shopping.As the market demand tends to be saturated,the development of home appliance industry enterprises is facing new challenges.This paper is based on the theory of capital structure and selects the capital structure of W Group as the research object.Firstly,it analyzes the characteristics of the household appliance industry and the status quo of capital structure in which W Group is located.Secondly,based on theoretical analysis,it studies the current status of W Group’s capital structure,and carries out the average value of assets and liabilities,debt structure and shareholding structure of enterprises in the same industry.Contrast,then through factor analysis and EVA analysis of W Group’s capital structure from 2014 to 2017,it is concluded that the capital structure of W Group has high asset-liability ratio,unreasonable term structure of debt and scattered shareholding structure.Finally,Based on the optimal capital structure model,the W Group’s optimal capital structure,based on the previous industry comparative analysis,W Group capital structure analysis and the optimal capital structure model calculation results,proposes W Group’s capital structure optimization objectives,and the W Group’s capital.Suggestions for structural optimization.This paper analyzes the capital structure of W Group and proposes the problems of W Group’s capital structure.It proposes W Group’s capital structure optimization proposal,which has certain guiding significance for W Group’s future capital structure optimization,which makes the enterprise more competitive and then from Improve the overall strength and competitiveness of the company as a whole,and improve the profitability of the enterprise and the value of the enterprise.At the same time,it also provides some reference and guidance for the optimization of capital structure of other enterprises in the household appliance industry.