Research On The Financial Distress Analysis And Escape Path Of XH Company

With the rapid development of economic and emerging technologies,the speed of product upgrading is constantly improving,and the competition among enterprises becomes particularly fierce.Faced with the complex and changeable external business environment,the business risks and financial risks of enterprises are constantly increasing.As time goes by,more and more enterprises fall into financial difficulties.Today's social industry is interlinked,as long as a company or industry crisis,other connected companies will be affected,resulting in a series of chain reactions and vicious circle.Therefore,how to get rid of financial difficulties has become a hot issue that researchers and enterprise managers at home and abroad are increasingly concerned about.As a mid-stream manufacturing industry,chemical industry is in the "middle stage" of the whole national economic chain,which is closely related to the national economy and is the basic industry and pillar industry of most countries.This industry has driven the economic development of some regions in China and solved some employment problems.However,since 2013,affected by the global economic crisis,ammonium nitrate and fertilizer,as related products in the chemical industry,have been suffering from overcapacity and declining prices,leading to large-scale losses of enterprises in related industries nationwide.As a listed company,XH co.,LTD.(hereinafter referred to as "XH company")is the largest ammonium nitrate production enterprise with the largest capacity in China,which is also affected by the economic crisis.In 2015,I was "hooded" by the Shanghai stock exchange for two consecutive years of losses and became*ST company.Based on this background,this paper chooses this company as the case study object,analyzes and studies its financial difficulties and solutions,and USES case analysis,qualitative and quantitative methods,dupont analysis and financial ratio analysis and other research methods to explore the reasons for XH company's successful escape.This paper first reviews the domestic and foreign scholars on the financial distress,the way out of the plight of the relevant research,and its review and summary.Then,the concept and theoretical basis of financial distress are sorted out,and the concept of listed companies in financial distress is defined by combining their own research and understanding.Based on the theoretical basis of financial distress,the background of XH company and the performance of the company in financial distress were introduced successively from the perspective of business scope and industry environment.Using the company's financial data,calculate the total debt,asset-liability ratio and profitability of XH company and other financial indicators,and find out the reasons why the company is in financial difficulties through dupont analysis and financial ratio method.Finally,the specific implementation of XH company's escape route and the company's business situation after the escape are analyzed and research.Through the study of the whole case,according to the achievements made by XH company,inspiration is obtained from the perspective of the success of getting out of difficulties,so that other listed companies can get early warning when solving financial difficulties,so as to realize the maximization of enterprise value,and provide inspiration and Suggestions for the same type of distressed enterprises to get out of financial difficulties,so that it has reference value.