Research On Deleveraging Financial Performance Of Highly Indebted Enterprises

Since 2015,in view of the rising leverage ratio and the financial vulnerability contained in high leverage,the central government and various ministries and commissions have issued a number of policy documents on deleveraging intensively,and achieved certain results.In this context,whether the financial performance of highly indebted enterprises can be improved after deleveraging is the main purpose of this thesis.In the research process of deleveraging and financial performance,the methods of literature,case analysis and comparative analysis are used.Firstly,the background of deleveraging and the summary of relevant literature;secondly,the thesis defines the concepts of high debt enterprises and leverage ratio and expounds the theoretical basis of the research;secondly,the current situation of enterprise leverage in China,the difference of leverage ratio between state-owned enterprises and non-state-owned enterprises,the difference of leverage ratio between industries and the causes of high debt of enterprises;finally,it analyzes and evaluates the case companies and draws the conclusion Conclusion.As China State Shipbuilding Corporation is facing a high debt problem and serious damage to the interests of company,the current management proposed to reduce the leverage ratio of company,so this thesis chose China State Shipbuilding Corporation as the case study of deleveraging performance of high debt enterprises.The case analysis is divided into two parts:(1)The present situation of China State Shipbuilding Corporation leverage.Based on the analysis of the reasons for the high debt of China State Shipbuilding Corporation,this thesis extends the motivation of deleveraging of China State Shipbuilding Corporation and the deleveraging behavior of China State Shipbuilding Corporation: debt to equity,clearing up the bad assets,issuing shares to purchase assets and raising supporting funds,etc.(2)Financial performance evaluation of China State Shipbuilding Corporation.This thesis uses the financial index method and EVA to analyze and evaluate the financial data of China State Shipbuilding Corporation horizontally.Through the principal component analysis method,it compares China State Shipbuilding Corporation with other enterprises in the industry vertically.In addition,it also considers the performance of China State Shipbuilding Corporation in the capital market,capital cost ratio and other aspects.Finally,the study of deleveraging and financial performance draws the conclusion that China State Shipbuilding Corporation deleveraging has more advantages than disadvantages to the overall financial performance,and based on China State Shipbuilding Corporation deleveraging behavior and financial performance,puts forward suggestions,hoping to give enlightenment to other high debt enterprises.