Research On Financial Performance Evaluation Of Steel Industry Under The Supply-side Reform Background

Steel is an important material for national construction.Iron and steel enterprises are an important support for China's real economy.Each step of steel companies from production to sales affects the development of the national economy.With the advancement of science and technology,economic development has increased the demand for steel quality.The situation in China's iron and steel industry is that oversupply of low-end steel production capacity and high-end steel production capacity have not been able to adequately supply,resulting in a huge pressure on production capacity in China's steel industry.In January 2016,China's supply-side reforms identified five major tasks:”eliminate leverage,reduce production capacity,remove inventory,reduce costs,and supplement short boards”to help transform and upgrade energy-based enterprises.The use of factor analysis method to analyze the changes in the financial performance of the steel industry before and after the supply-side reform,based on the inspection of policy effects,provide data support for the follow-up reform.First,on the basis of defining the background and meaning of supply-side reform,the meaning of supply-side reform financial performance evaluation,and the supply-side reform practice of the steel industry,the principal-agent theory and the new supply theory are briefly described.Secondly,the steel industry financial performance indicator system was designed from the perspective of supply side reform,and the factor analysis method was used to analyze and evaluate the financial performance of the steel industry in the 10 years before and after the supply-side reform.Baosteel Co.,Ltd.was chosen again as a case to analyze the trend of changes in financial performance before and after the supply side reform and Baosteel's advantages and disadvantages.Finally,from the aspects of enhanced asset liquidity,enhanced profitability,enhanced operational capabilities,and optimized asset structure,Baosteel Co.,Ltd.expanded the advantages and disadvantages of Baosteel Co.,Ltd.,and continued to promote supply-side reforms to propose financial performance optimization strategies.From the perspective of changes in the comprehensive scores of factors before and after the supply-side reform of the steel industry,supply-side reform has a positive effect on the development of the steel industry,and the steel industry should continue to vigorously promote supply-side reforms.After the supply-side reform,Baosteel Co.,Ltd.has strong profitability,increased liquidity,and improved asset structure.However,after the reform of the supply side,the company's operating capacity has declined.Baosteel should further increase its profitability advantage,enhance it's operating capacity,and enhance its ability to resist risks.