The Study Of Causation And Solution Of Financial Distress For Shanshui Cement

Financial distress refers to the situation in which a company cannot afford its debts and the company's profitability continues to decline or even lose.Wit hthe continuous advancement of global economic globalization,the global econ omic environment has become increasingly complex.The variability faced by do mestic companies has increased.At the same time,the operating pressureandfinan cial pressure of Chinese companies has gradually increased.When the economy comes out of control,it will trigger companies to fall into financial crisis.Dilem mas are even the threat of bankruptcy.China is among the fastest growing co untries in the world in terms of economic growth.At the same time,pecuniary distress is a common problem in China's listed companies.Cement companies cl osely related to the economic cycle are one of the representatives of many fin ancially distressed companies.Since 2011,under the pressure ofeconomic downtur n,the sharp decline in market demand,the overcapacity of the cement industry and the unfavorable impact of supply and demand,and the fall in product price s,the decade-long golden cycle of China'scement industry has quietly passed a way,and has entered an industry recession cycle.In particular,the cement indust ry entered the winter period completely in 2015.Enterprises entering the recessi on period is more prone to financial distress problems,and their core compete ncies are impaired.More companies are in financial difficulties and will acceler ate the downturn of the industry and set up a vicious circle.Therefore,research on this issue has certain research and application value.This article focuses on the concept of financial distress,the concept of m onetary distress,the measurement of financial distress,the causes of financial dist ress,and measures for divorcing financial distress.It begins with the analysis of the predicament of the debt default,debt repayment ability and profitability of t he case company Shanshui Cement.The value model measures the overall sever ity of Shanshui Cement's financial distress,and uses a qualitative and quantitati ve combination analysis method to obtain specific financial distressconditions,an alyzes the internal and external factors of Shanshui Cement's financial distress,and combines the company's core competence theory and remodeling methods.P ut forward solutions to the difficulty of landscape cement and concrete counter measures.The article is divided into six chapters in the structure,among which:Chapter 1 is the introduction;Chapter 2 is the theoretical basis for financial di stress;Chapter 3 is the evolutionary process and concrete performance of financi al distress;Chapter 4 is the cause of the financial distress of Shanshui Cement.Analysis;the fifth chapter is the solution to the financial distress of Shanshui C ement and the specific strategies;Chapter 5 is the conclusion and outlook.This case study found that Shanshui Cement's financial position began tod eteriorate after 2011 and was in a serious fiscal dilemma between 2014 and 2016.The main problems are heavy debt burden,lack of debt repayment ability,declining profitability,and poor quality of returns.The root causes aremainly cau sed by the combination of the unfavorable business environment,unbalanced su pply and demand in the market,falling product prices and the riseof raw materi als,external causes and conflicts of control,abuse of leverage,huge pressure on taxation labor costs,and internal causes of declining main business.Based on th is,this paper proposes the path to reshape the core capabilities of enterprises,g et rid of financial difficulties,and identify,recover,and reconstruct the core co mpetences of enterprises,through the relationship with the financial system,finan cial resources,and shareholders.Checks and balances reshape corporate operatingr esources so that the core competencies of troubled companies can be restored.Through the renovation of corporate financial soft resources,technology,and bus iness,the company's management capabilities and functional knowledge can be u pgraded to realize the reconfiguration of corporate core competencies.As a resul t,Shanshui Cement has emerged from the current fiscal dilemma.The paper ev aluates and measures the Z-value model of pecuniary distress levels and puts f orward the three-phase concrete measures for resolving the difficulties and resh aping the company's core competencies.It can be used as a reference for eval uating companies that are financially distressed,and can help listed companies g et rid of pecuniary difficulties.A certain guiding significance.