Research On The Capital Structure And Optimization Of China Southern Airline

The capital structure of enterprises reflects the status of various capital composition of enterprises,and can guide the operation and management of enterprises.When the enterprise has a good capital structure,it can help the enterprise develop stably,constantly create more profits,increase the enterprise value and strengthen its own strength.In recent years,covid-19 has been changing in the international market,and the exchange rate has fluctuated greatly.In addition,the new epidemic of pneumonia in 2020 is extremely unfavorable to the development of the aviation industry.Airlines have sought government help or loans from financial institutions to cope with the impact.However,the original asset liability ratio of most aviation enterprises in our country is high.If we continue to expand liabilities,the cost of liabilities will increase and the financial burden will increase,and the financial risk will be higher.Therefore,in the current social environment,it is particularly important for China Southern Airlines to enhance its competitiveness by optimizing the enterprise capital structure and making the capital structure at the optimal level.Based on the research results of the theory of capital structure from inside and outside the field,this paper first makes a basic analysis on the operation and financial situation of China Southern Airlines,then vertically analyzes the capital structure of China Southern Airlines from the perspectives of debt structure,equity structure,financing structure and financial leverage,and compares China Southern Airlines with four other enterprises in the same field,Analyze the existing problems and the causes of these problems.Then conduct static analysis,use the method of considering debt income and risk,EBIT and total capital to conduct linear analysis on the EBIT and total capital of China Southern Airlines in recent years,find out the optimal asset liability ratio,and then use the entropy weight method to conduct dynamic analysis on the data of China Southern Airlines from 2016 to 2020 in combination with the domestic and foreign elements influencing the capital structure,Determine the direction of capital structure adjustment of China Southern Airlines.Finally,the adjustment range is determined,so as to put forward capital structure optimization suggestions for China Southern Airlines to adjust debt structure,optimize equity structure,pay attention to endogenous financing and enrich financing channels.