Study On Financing Structure Of MY Company

Agriculture is the foundation of people’s survival and development,the foundation of people’s survival,and the primary condition of all production.China is a big agricultural country.As the first industry,agricultural industry plays an important role in China’s economic development.Based on the eating habits of Chinese residents,pork accounts for more than 60% of the meat food of Chinese residents.Therefore,pig breeding industry occupies an important part in the whole agricultural industry,which is a trillion level market.Although the market space is very large,the development of pig breeding industry is not satisfactory.By the end of2020,the market share of large-scale enterprises in pig breeding industry is only about10%.Compared with the market share of more than 50% in western developed countries,the future development of pig breeding industry in China is still far away.The main reason for this phenomenon is that the risk attribute of agricultural industry can not attract capital,and the power of capital driven development is relatively weak.Therefore,the problem of difficult and expensive financing always exists in agricultural enterprises,and the influence of many factors also makes the financing structure of many agricultural enterprises more prominent.This paper takes my company as the research object,which is the leading enterprise in the national pig breeding industry.Firstly,it introduces my company and its industry.Secondly,combined with the theory of financing structure,this paper expounds the problems existing in my company’s current financing structure,mainly including the following problems: 1.the proportion of direct financing is relatively low;2.Unreasonable term structure;3.The asset liability ratio is relatively high.Then it analyzes the impact of these problems on the company’s solvency and operating capacity,and further analyzes the causes of these problems.Through the analysis and research,the main reasons are as follows: first,my company and the industry in which the company is located have greater risks;Second,investors or creditors’ cognition of the industry and the company is still relatively traditional;Third,although the scale of the company’s assets is relatively large,there is no subject matter that can be used for mortgage financing.Based on the above reasons and the actual situation of the company,we make internal and external decisions to optimize the financing structure.The internal decision-making mainly includes:(1)increasing the strength of equity financing and increasing the proportion of direct financing;(2)Integrating long-term capital and optimizing debt maturity structure;(3)Enrich financing tools and implement diversified financing.The foreign policy-making includes:(1)strengthening the communication between financial institutions and investors,increasing mutual trust and changing cognition;(2)We should promote the mortgage of the management right of facility agricultural land,make the company’s assets have the property of mortgage,and revitalize the company’s fixed assets.It is expected that the implementation of the above plan can optimize the financing structure of my company,improve the company’s operating efficiency,promote the steady and healthy development of the company,and then lead and promote the transformation and upgrading of the pig breeding industry.