Research On Capital Structure Optimization Of TY Stock Company

With the rapid development of agricultural industrialization, a serious imbalance between supply and demand emerged in fertilizer production,overcapacity is increasingly worsening and situations such as decline in profitability,debt ratio and unreasonable constitution exist in some companies in the industry. Therefore,carrying out analysis and optimization on relevant companies‘capital structure is of important practical significance to the improvement of profitability, debt ratio and debt structure of related companies.This paper, based on MM theory, trade-off theory and other theories, selecting TY company as the study object, conducts detailed analysis of the liability structure, equity structure and total capital structure of TY company using financial and statistical analysis methods. Compared with the capital structure of listed companies in the same industry, it draws the conclusions that the company’s capital structure has the problems of high debt ratio, single financing channel, unreasonable debt structure, insufficient working capital, unreasonable equity structure with a dominant shareholder. Then,with the method of combining static quantitative analysis and dynamic qualitative analysis,it proposes methods and ways of optimizing capital structure for the company, and analyzes the internal and external dynamic factors and their respective weight, so as to provide a basis for enterprises to develop a capital structure optimization program in line with the maximal value of the enterprise. Finally, combined with dynamic adjustment factors, financial flexibility and potential risks, it comprehensively determines that the best debt ratio range is [50%-71%] and the best long-term debt ratio range is [27%-37%].Based on the corresponding range,TY company can conducts quantitative adjustments on its own capital structure accordingly to achieve corresponding optimization of its capital structure.According to the problems existing in the capital structure of TY company and the company’s optimal debt ratio range and long-term debt ratio range, this paper proposes safeguard measures for the company to achieve structural optimization in terms of the company’s financing policies,debt structure, equity structure, the use of stock resource, improvement of profitability and corporate governance.They can provide a reference for the enterprise to develop the capital structure optimization rules in many ways, so that the company’s capital structure optimization can be successfully achieved.