Cause Analysis And Countermeasures Of Huiyuan Juice Financial Distress

To seek the sustainable growth of profit and the sustainable promotion of value is an important prerequisite for the survival and development of enterprises,but also the primary objective of business.However,in the face of fierce market competition And pressure from investors,some companies have adopted radical business strategies and blind investment expansion to achieve short-term business objectives,ignoring their own actual situation,So that the financial difficulties,and even close to bankruptcy cases are numerous.The research object of this paper: Huiyuan Juice belongs to this category.At present,China's economy as a whole is in a downward trend,As the industry leader,The reasons for its financial distress are well-represented.The in-depth analysis and Research on Huiyuan juice can provide a good warning and Enlightenment for other companies to prevent financial distress.This paper analyzes the financial situation of Huiyuan Juice Company from its listing to its suspension for nearly 10 years,and also makes a horizontal comparison with three representative companies in the same industry,this paper puts forward the problems existing in the financial aspect of Huiyuan Juice and the concrete manifestations of the financial difficulties,analyzes on the causes of the financial difficulties of Huiyuan Juice,and advances some countermeasures for getting rid of the financial difficulties and some enlightenment for preventing the financial difficulties.Through the analysis of Huiyuan Juice Company,the main conclusions are as follows:Firstly,this paper analyzes the financial situation of Huiyuan Juice in the past ten years,and finds that the company's financial situation is relatively good before the merger and acquisition of Coca Cola and Huiyuan Juice,but since the merger and acquisition in 2009 was not approved,most of the financial indicators show a deterioration trend.Among them,the current liabilities increase year by year,and the operating cash flow continues to decline,indicating that the company's solvency is weak;as an important indicator to measure profitability,the sales net interest rate and return on net assets have shown a cliff like downward trend in recent ten years,which shows that Huiyuan Juice's profitability is low;in addition,the fixed assets turnover rate,total assets turnover rate and other indicators are also It reflects the company's lack of operation ability and growth ability.Compared with other companies,there is still a big gap.These signs show that Huiyuan juice has been in financial difficulties for a long time.In addition,this paper also finds that the company has cash flow shortage,heavy debt burden and continuous loss of profits,which are the concrete manifestations of the company's financial difficulties.Secondly,this paper analyzes the causes of Huiyuan Juice's financial distress,and divides the causes into internal and external causes.From the external causes,the external causes of Huiyuan Juice's financial distress mainly include the change of policy environment,the change of market demand and the intensification of industry competition;from the internal causes,blind investors expand and extensive enterprises Business management and weak internal control will make Huiyuan Juice difficult to get rid of financial difficulties.Thirdly,this paper puts forward the possible countermeasures to solve the financial difficulties of Huiyuan Juice,and gives the corresponding prevention enlightenment.Through the above analysis,it is found that the current financial situation of Huiyuan juice has been difficult to maintain its future business development.Only by finding a strong and well funded M & a party to merge Huiyuan juice into its company,can the company's difficult situation be improved.At the same time,in order to make it occupy a place in the fierce fruit juice market,the company should be based on its own high concentration juice market and highlight its traditional brand advantages.In addition,the company also employs suitable professional managers and strengthens the quality of internal control,so as to effectively solve the shortcomings of family business management,and then make the company's financial situation better and get rid of the financial difficulties as soon as possible.The research of this paper can not only provide the relevant risk prevention enlightenment for stakeholders to avoid financial distress in time,but also provide correction strategies for other listed companies,and give decision-making suggestions to avoid financial distress,which is conducive to the stable and sustainable development of the capital market.