Research On YL’s Capital Chain Management And Control

Facing with lots of risks,enterprises have to take measures in capital chain management and control.during the development process.Capital chain management and control is the key to the financial management,and it always runs through the entire process of business operation.Once the capital chain gets in trouble,the company will be at risk.Since there are many reasons for the breakage of the capital chain,it is beneficial for the enterprise’s operating management to solve the problems of the capital chain management and control according to different reasons,and it is also of great practical significance for the company to do the research on the capital chain management and control.YL is the only large energy-saving and environmental protection listed company in China which mainly takes the chemical product and the coal as its main business and operates supply chain industries as well.It’s very important to do research on capital chain management and control since the capital chain management is relatively complicated.The research on chain management is of great significance.Based on the review of relevant literature and the introduction of related theories such as risk management and financial sharing,this paper analyzes the status of fund management in the fund raising to the fund use and to the capital recovery using the financial report data combined with the current status of YL company operations.First of all,the Z-score model and the F-score model were used to analyze the capital chain risk of YL company.It is suggested that the Z-value and the F-value of the YL company are lower than the sample companies in the same industry when we make the horizontal comparison of the financial data between YL company and the sample companies in 2018,and the result indicates the risk of bankruptcy.Later,the Z-value and the F-value of YL Company from 2015 to 2018 are compared longitudinally.According to the calculation results,the Z-value and F value of YL Company are always in the warning area,and there is a hidden danger of breaking the capital chain.Subsequently,the risk probability of the capital chain breakage of YL Company was evaluated,and it is also found that there is also a hidden danger of the capital chain breakage.Upon further analysis,I found it is can led by the lack of correspondingcapital chain management and early warning mechanisms,excessive expansion,single financing channel,excessive pledge guarantees,and unreasonable internal governance structure.Therefore,the following measures to optimize capital chain management and control are proposed,such as establishing a financial risk early warning model,improving profitability and solvency,expanding financing channels,and developing plantation tourism.It is hoped that the research can also provide a reference for other companies to conduct capital chain management and control.