Study On The Financing Methods Of DX Aluminum Co., Ltd

Thought the analysis of the financial statement of DX Aluminum CO.,LTD., the paper is to understand the financing needs and profitability of the business, and find out the company is facing a big gap of demand for fund during the current operation. Especially in the past two years the enterprise take up a larger amounts of fund after the further expansion, which lead to a tight cash flow. However, DX still have considerable profitability, because it is located in the northwest region where has lower electricity cost for production.To transfer the production capacity into products, the enterprise must have strong support of fund (a lot of money is needed when start the electrolytic cell). The production capacity of aluminum industry of China is relatively surplus, as a result, DX will still have the problem on how to maintain stable production after facing price fluctuations of aluminum products. As a result, a good financing method is particularly important for the further development of DX.In addition, how to use the capital market tool to get lower cost of borrowing funds under the situation of financing needs scale keeps rising is also a important part of a company’s development. The Chinese aluminum market is now in a very competitive environment, reduce financial costs will undoubtedly improve the enterprise’s competition in the market. So the transformation of the qualitative change after the quantity will be more suitable for the development of the enterprise.This paper will analyze the current market financing model from financing costs, free degree of financing and capital utilization situation. Combining theory with practical situation,to evaluate the current enterprise financing structure; base on the metal features of aluminum products, to introduce new financing mode to analyze, such as trade financing, futures warehouse receipt pledge financing; through the comprehensive evaluation and choice, to select the most suitable financing mode for DX. Finally suggest a implementation way and security system of financing...