Research On Financial Distress Of Deyang Heavy Equipment Company

The heavy equipment manufacturing industry is the basic industry of national economy development, and also expected to provide equipment for national defense construction. One example of this industry, Deyang Heavy Equipment Company, as once regarded as the industry giants, however, has to face the fact that the company has no choice but quit the market due to heavy losses in successive years and unfortunately financial difficulties when the industry itself is confronted by massive deficit and economic slump. Therefore, how to help this heavy manufacturing enterprises out of such adversity and meanwhile seek development has become an important research topic of great and practical significance.This thesis is aimed at the case of Deyang Heavy Equipment Company, which is trapped in financial difficulties, analyzing the specific reasons, from the perspective of both internal and external causes, and consequently proposing turnaround measures of such situation. It is divided into six chapters and the first chapter is the introduction, which consists of the research background, purpose, significance, literature review at home and abroad, research contents as well as research methods. The second chapter introduces the related theory of financial distress,including the concept and characteristics of financial distress, and overall financial distress theory. The third chapter contains the description of the financial distress and detailed analysis of the characteristics revealed. The fourth chapter provides a comprehensive analysis on the specific reasons according to the company’s annual report and announcement, in terms of internal and external causes. The fifth chapter is structured by the measures to get out of this dilemma. Lastly, the sixth chapter is the conclusion and enlightenment of the thesis.