The Research On The Influence Of Capital Deepening On Financial Efficiency In SQ Company

China’s economy has maintained long-term rapid growth,creating the "China miracle" in the history of global economic growth.The manufacturing industry has also experienced rapid development,and laid a solid foundation for China’s high-quality economic development.The development of the manufacturing industry is characterised by a significant increase in the number of market players,a significant increase in labour productivity,an intensified trend of capital deepening and an increasing capacity for innovation.As China’s economy enters a new development stage of high-quality development and enters the "14th Five-Year Plan"development-period,the economic environment changes and uncertainties surge,and in the context of "promoting the formation of a new development pattern in which the domestic cycle is the mainstay and the domestic and international cycles promote each other" Under the background of "promoting the formation of a new development pattern with a major domestic cycle and a dual domestic and international cycle to promote each other",it should become a pressing task for the high-quality development of the manufacturing industry in the 14th Five-Year Plan period to speed up making up for the shortcomings of the manufacturing industry,make the real economy stronger.Thus,it is of great theoretical value and practical significance to explore how capital deepening in manufacturing enterprises affects the process and results of financial efficiency,and to improve the effectiveness of capital operation and the level of financial decision-making of enterprises.This thesis chooses SQ Company as the research object,adopts the method of case study,uses the theory of enterprise financial analysis and evaluation to study the financial efficiency and related issues,and tries to explore SQ company’s capital to deepen the effective measures to improve the financial efficiency.The thesis firstly explains the background and significance,the current situation of domestic and international research,the content and methods of the study;secondly,it defines and measures the capital deepening of enterprises,and introduces the three basic theories of financial efficiency theory,financial evaluation theory and factor substitution theory,and the influence mechanism of enterprise capital deepening on financial efficiency;secondly,it analyses the current situation of capital deepening and financial efficiency of SQ companies;then,it compares and analyses the data with industry data and finds that the capital deepening of SQ companies SQ’s capital deepening has brought about the effects of fluctuating profitability,high amount of inventory loss,decreasing efficiency in the use of fixed assets,high capacity utilisation,decreasing sustainable development capacity,fluctuating R&D and innovation capacity,unreasonable debt structure,increasing financing costs,etc.;finally,it was proposed that SQ should appropriately control R&D expenditure,reasonably formulate production plans,revitalise idle assets,diversify its operation to optimise resource allocation,improve its ability to obtain core Finally,SQ proposed effective measures such as proper control of R&D expenditure,reasonable production planning,revitalisation of idle assets,diversification of operations to optimise resource allocation,improvement of core acquisition capacity,synergistic development of "hardware" and"software",reduction of capital costs and reduction of cost of equity capital.This thesis not only enriches and develops the theory of capital deepening,but also helps the manufacturing industry to improve financial efficiency under capital deepening,which is of great theoretical value and practical significance for enterprises to improve the effectiveness of capital operation and financial efficiency.