Study On Optimization Of Capital Structure Of PL Children’s Clothing Company

The clothing industry, as a domestic traditional pillar and an important livelihood industry, has always offered guarantees for the basic necessities of life of the majority of the Chinese people, and at the mean time, it plays a significant role in the areas of prosper marketplace, broader labor employment and international trade cooperation promotion. Thus it contributes enormously to providing a large amount of construction funds for the country.This paper briefly summarizes research achievements of scholars at home and abroad on capital structure theories and the development trend of the basic structural theory, and based on such theories, carries out researches on relevant influences of capital structure optimization that on account of maximum of value for unlisted companies. Aiming at the business difficulties faced by PL Children’s Garments Company, it analyzes the risks and reasons faced in day-to-day operations by PL Children’s Garments Company. In accordance with resources owned PL Children’s Garments Company, combine with the use of appropriate capital structure theory to conduct systematic analysis on the current situation of capital structure in PL Children’s Garments Company, and focus on the research of influences generated by relationships among all members of capital structure on enterprise values, so as to formulate corresponding optimum proposal for its capital structure and improve the capital structure of the company. It makes the capital structure of PL Children’s Garments Company tend to be optimized to offer solutions to the difficulties in shortage of funds. First of all, profound analysis shall be carried out on the main related financial index of PL Children’s Garments Company in recent 5 years, and make horizontal comparison between such index and the average value of related financial index of national children’s clothes and clothing listed enterprises, to find out lesions existed in the capital structure of PL Children’s Garments Company, such as low debt ratio, unreasonable capital structure, insufficient working capital, highly concentrated ownership structure, single financing channel, etc.; secondly, in terms of capital structure, aim for enterprise value maximization, apply mature capital structure theory and advanced management operations research method to calculate the optimal capital structure point of PL Children’s Garments Company, and conduct proportion adjustment to capital structure of PL Children’s Garments Company depending on the degree of its financial leverage; finally, in addition to the analysis of influences generated on internal and external environmental elements of capital structure of PL Children’s Garments Company, find out the appropriable capital structure optimization. It proposes response system guarantee for the existing lesions in the capital structure of PL Children’s Garments Company.This paper adopts the analysis method that combining theories and practices, and takes unlisted company, PL Children Garments Company, as research object; what’s more, through the profound analysis on its main financial index in recent 5 years, the current situation of capital structure and reasons for its formation are revealed: firstly, raise questions; secondly, analyze questions; thirdly, solve questions. Seek for a more suitable capital structure for the sound development of PL Children’s Garments Company, making the financing channel of the company smoother and increasing its core competiveness, so as to achieve value maximization of PL Children’s Garments Company.Through the reasonable optimization of capital structure of unlisted PL Children’s Garments Company, more profoundly understand that theories are only tools and methods to solve problems, and they cannot be applied mechanically. In the daily work, concrete analysis shall be carried out on different objects in specific circumstances; otherwise, immeasurably unknown negative effects might be brought to enterprises in future. Through the optimization research on capital structure of PL Children Garments’ Company, it is believed that a role of reference significance can be played for capital structure of domestic unlisted clothing enterprises.