Financial Diagnosis Of T Company

China's communications industry has entered the era of 5G networks.As one of the high-tech industries in China,the development of the communications industry faces both opportunities and challenges.Competitive enterprises such as Huawei and ZTE have shifted to technological innovation competition,while other small and medium-sized enterprises are still in the transition period from production and marketing competition to capital competition and face complex financial management problems.The key to the survival and development of communication equipment manufacturing companies is the sustainability of technological innovation activities to acquire core competencies.Technological innovation activities require a large investment in the long term,reasonable financial management policies can provide important guarantees for innovation activities,diagnosis of the financial management activities of communication equipment manufacturing companies is necessary.In the 1990 s,T Corporation was the telecommunications giant in China,enjoying the same reputation as ZTE and Huawei.In recent years,competition in the communications industry has been fierce,and as a result of industrial and technological upgrades that have led to the impairment of inventories and intangible assets,and the failure of investment transformation strategies,T Company T has continued to lose money and its share price has fallen,facing the risk of delisting.In this paper,we propose initiatives to improve financial activities through financial diagnosis of the T company.First,we analyze the industry environment and business status in 2014-2018;secondly,the analysis of solvency,operational capacity,development capacity and profitability is carried out using trend analysis and comparative analysis,and analysis of investment and financing strategies based on the content of the financial strategy provides the basis for financial diagnosis;then,using the chain substitution method and the improved DuPont analysis method to find out the indicators with a greater degree of influence,based on which the cause analysis from three aspects(profitability,operational efficiency,the debt structure)to find the root cause of the problem;finally,we propose optimization measures including iImprove product competitiveness,and strengthen accounts receivable management.