Research On Correlation Between Assets Structure And Profitability Of Coal Listed Companies In Shanxi

Shanxi is one of provinces which have the most abundant coal resources. Coalindustry has become an important pillar industry in Shanxi Province. The developmentof coal industry in a large extent influences the development of economy in Shanxiprovince. In recent years, China’s economic has grown at a slow speed, and industrialstructure has adjusted and upgraded gradually. In2008, our country cancelling coalimport tariffs, import coal quickly occupied domestic market. The steel market hasplunged, in a period of downturn. Domestic thermal power generation has fallen sharply.The relevant provisions of environmental governance have a certain effect on the salesof coal. All of these lead to the demand of coal falling sharply. The coal market is in astate of oversupply. The sales of coal have descended constantly, even appearedunsalable phenomenon. In addition, the price of coal continues to fall. Coal enterprisesface unprecedented difficulties and challenges in the production and operation. In thecomplicated external economic environment, studies how to realize the enterprise’sbusiness performance have practical significance.At present，under the background of transformation spanning development，Shanxi should be positive to the coal industry to implement the transformation andupgrading. The development of the enterprise should not only focus on the relationbetween capital structure and management benefit，but also pay attention to the relationbetween the assets structure and operating performance. Assets structure is reasonableor not，directly affects the economic benefits of enterprises. Reasonable assets structureis conducive to improve corporate profitability.Based on the existing research results at home and abroad，this article selectsShanxi coal listed companies as the research object. According to three years offinancial data in2007-2012，the paper uses the method of normative research andempirical analysis to analyze the relation between assets structure and profitability ofthe coal listed companies. Firstly, find the problems existing in assets structure of coalenterprises by financial analysis of relevant data. Then, analyze the effect of differentassets structure on the profitability by means of EXCEL and Eviews6.0software formultiple regression analysis. Empirical shows that the currency funds ratio, accountsreceivable, the inventory ratio and fixed assets ratio have a significant influence in profitability; intangible assets ratio affect profitability insignificantly. Combined withempirical conclusions, this paper puts forward a series of reasonable policy suggestionsto optimize the assets structure of enterprises and to improve profitability.